{"id":177127,"date":"2020-12-03T17:44:06","date_gmt":"2020-12-03T17:44:06","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=177127"},"modified":"2021-02-04T20:05:57","modified_gmt":"2021-02-04T20:05:57","slug":"top-defi-protocol-aave-rolls-out-v2-native-ethereum-token-instantly-spikes-8","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/top-defi-protocol-aave-rolls-out-v2-native-ethereum-token-instantly-spikes-8\/","title":{"rendered":"Top DeFi protocol Aave rolls out v2: native Ethereum token instantly spikes 8%"},"content":{"rendered":"

Leading decentralized finance protocol Aave<\/a> has just rolled out its biggest update yet: v2, or version 2.0.<\/p>\n

This update has been hyped for a long time, as many expect it to begin turbocharging the growth of the protocol. Through Aave, Ethereum DeFi users can easily lend and borrow top digital assets like ETH and stablecoins. The protocol currently has a total locked value of $1.5 billion as per DeFiPulse,<\/a> making it the fourth-largest DeFi protocol by that metric.<\/p>\n

What is Aave v2?<\/h2>\n

Rolled out just minutes ago as of this article's writing, Aave v2 aims to issue solutions to some pain points that users of the first iteration of the protocol had.<\/p>\n

According to founder Stanti Kulechov<\/a>, Aave v2 allows its users to swap their underlying collateral in a gas-efficient manner. When using Aave, a key pain point during the summer and during times of immense volatility was the extremely high transaction fees, effectively pricing out smaller users.<\/p>\n

Per an Aave document obtained<\/a> by CoinDesk, collateral swapping can help users avoid liquidations:<\/p>\n

“Collateral swapping can be a useful tool to avoid liquidations. If the price of your collateral starts to fall, for example, you can simply trade it for a stablecoin so you don\u2019t have to worry about price fluctuations and potential liquidation.”<\/p><\/blockquote>\n

Another key use case of this upgrade is the ability to delegate credit lines to addresses other than your own or sub-addresses you may own.<\/p>\n

This means that you can deposit $1,000 worth of collateral into Aave, then delegate that credit to another address to let the owner of that address use it as collateral.<\/p>\n

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@AaveAave<\/a> launched v2. ?<\/p>\n

– Swap your yield
– Swap your collateral
– Close your loan with your collateral
– Delegate credit<\/p>\n

And much much more, Aavengers enjoy \u2764\ufe0f? https:\/\/t.co\/OOb8EjD2j9<\/a><\/p>\n

— stani.eth ? v2 mode ? (@StaniKulechov) December 3, 2020<\/a><\/p><\/blockquote>\n