Harmony Launches Aave v3 On Mainnet

Abhishek Purushotham
Published in
3 min readMar 16, 2022


We are excited to announce that we have launched Aave v3 on our mainnet, providing users greater capital efficiencies, increased security and cross-chain functionality. The v3 was released in January 2022 on our testnet and is now making its way to mainnet.

New Features

V3 of the Aave Protocol augments the core concepts of Aave Protocol (aTokens, instant liquidity, stable rate borrowing, credit delegation, etc.) with new features.

Capital Efficiency: V3 allows users to optimize their assets supplied to the Aave Protocol in terms of yield generation and borrowing power. The High-Efficiency Mode allows borrowers to extract the highest borrowing power out of their collateral.

Isolation Mode: New assets can be listed as isolated in Aave protocol V3. Borrowers supplying an isolated asset as collateral cannot supply other assets as collateral, and borrowers using isolated collateral can only borrow stablecoins that have been permitted by the Aave governance to be borrowable in isolation mode.

Risk Management: Aave V3 brings a greatly improved set of risk parameters and new features to protect the protocol from insolvency, including supply and borrow caps.

Multiple Rewards: Aave V3 offers the option to have multiple rewards per token. Now, it is possible for an asset listing to enable additional incentives denominated in native protocol tokens

Incentives For New Users

To accelerate Aave’s expansion in the multi-chain world and supplement the initial usage of Aave on our mainnet, Harmony will provide $5M USD in ONE tokens in incentives for new users.

The incentive emission schedule will be:

Months 1–3: 40%

Months 4–6: 30%

Months 7–9: 20%

Months 10–12: 10%

Instead of providing higher incentives over a short period of time, the one-year incentive campaign was explicitly planned so that new users have the opportunity to come into Aave and decentralized finance, allowing all types of users to benefit from the launch.

In addition to token incentives, Harmony will also be investing in co-marketing and educating users through tutorials, videos and community-led support to catalyze the protocol’s usage on Harmony.

The newly released v3 of Aave will build upon what the v2 brought to the Harmony blockchain. With additional features and a core focus on security and efficiency, we expect increased participation from the community and are excited to welcome new users to decentralized finance, Aave, and Harmony.

About Aave

Aave is an open-source and non-custodial protocol that enables the creation of money markets. It allows users to lend, borrow and earn interest on crypto assets. Running on the Ethereum blockchain, Aave is a system of smart contracts that enables these assets to be managed by a distributed network of computers. At its core, Aave enables the creation of lending pools that enable users to lend or borrow various cryptocurrencies.

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About Harmony

Build on Harmony, Bridge to All Chains

Harmony is an open and fast blockchain. Our mainnet runs Ethereum applications with 2-second transaction finality and 100 times lower fees.

Harmony is your open platform for assets, collectibles, identity, governance. Our secure bridges offer cross-chain asset transfers with Ethereum, Binance and 3 other chains.

We ❤️ Developers.

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Abhishek Purushotham

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