First proposed in November 2021, Aave’s latest upgrade is finally here.
Launched earlier this month, V3 of the DeFi lending protocol has already raked in more than $143 million across the first seven assets listed.
Though the asset list is far shorter than the previous iteration, the project’s founder and CEO Stani Kulechov says this upgrade is all about managing risk.
New features like Isolation Mode, for example, will let the protocol safely onboard what Kulechov calls long-tail assets without putting the entire protocol at risk. These would be tokens that have low liquidity, subjecting them to extreme volatility.
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