Aave has officially scored a big one in the crypto industry after the protocol recently announced that the Version 2 of its mainnet just launched. This is big news for the protocol as the testing, release, and subsequent launch of the version 2 on its mainnet is coming less than a year after the first version launched.
The statement released by the protocol mentioned how happy the protocol was with its team of developers for their steadfast work towards the timely launch and informed users that the new version has some potential upgrade present. Immediately after the announcement was made, the Aave token reacted and witnessed a massive 15% jump in the crypto market.
Aave upgrades certain features in the recently launched V2 mainnet
Aave, a decentralized lending protocol, affords users on its platform the opportunity to lend, borrow, and enjoy a massive interest in different digital assets. The protocol announced on its blog that the first version of its mainnet was already live at the beginning of this year.
With the protocol being one of the projects that enjoyed massive boosts in the DeFi boom that took place some months ago, the project saw its market size undergo a surge to over $1 billion. Announcing the launch of the second version of the mainnet, the developer team noted that they made certain upgrades to the previous version with things such as an improvement to its first-ever undercollateralized loan option in the decentralized finance space, which is known as Aave Flash Loans.
The protocol also mentioned that it had made a significant upgrade in its yield and collateral swap features. With that, users can now trade the digital assets they have deposited in the protocol, even if used as collateral. In the statement, the protocol said that this feature was made possible to help their users navigate certain liquidation issues.
Aave token sees a 15% rise after the announcement was made
Another upgrade that Aave announced that it has upgraded is how users will subsequently repay their loans. Previously, users are subjected to a very technical way of repayment. They would have to withdraw their collateral, buy the digital asset borrowed, repay the debt, and finally unlock their collaterals.
Now, users can now pay directly with their collateral and close their loan positions immediately. Other upgrades mentioned in the protocol’s official statement include flash liquidation, batch flash loans, debt tokenization, and native credit delegation.
Another tool that the protocol said will be available in the coming days is the migration tool, where users can move their liquidation to V2 without closing their loan positions in the first version. Earlier this year, Aave made a decision that turned out for the best after it renamed its previous LEND token as AAVE and took it through a token split of 100:1.
The new Aave token has since reacted to the announcement as it saw a 15% increase to move from $83 to $95. However, the market’s present volatility is still driving the market as it is within touching distance of its previous price.
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