Aave V3 Overview — what you need to know

Aave launched V3 of its popular decentralized lending protocol on six blockchains simultaneously, including Fantom, Optimism, Avalanche and Harmony.

Its latest update augments the core concepts of Aave Protocol (aTokens, instant liquidity, stable rate borrowing, credit delegation, etc.) with new features in following areas.

• Portals for cross-chain transactions
• High efficiency mode for higher borrowing power
• Isolation mode for new assets to be listed
• Gas optimization for 20%-25% gas reduction

In addition to the above user facing features, Aave has also made optimization to its codebase to allow more modular community integrations and risk management capabilities.

Portal

Portal allows the flow of liquidity between Aave V3 markets across different networks. It allows governance-approved bridges to burn aTokens on the source network while instantly minting them on the destination network.

This can help bridging protocols like Connext, Hop Protocol, Anyswap, xPollinate and novel solutions that can be…