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Aave Deploys Version 3 On Ethereum Network

Published date:

February 2, 2026

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Crypto lending protocol, Aave, has deployed its third version upgrade (V3) on the Ethereum network following a successful unanimous vote for a governance proposal.

Announcing this in a Twitter post, Aave said the community’s unity has led to the deployment of its V3 on the Ethereum Mainnet. They also stated that the best part of the upgrade is its flexible design.

The community was united on this vote and with our biggest market upgrading to V3, we can’t wait to show you what else we have in store.

Hint: It’s almost GHO time pic.twitter.com/WwnUT7IS3t
— Aave (@AaveAave) January 27, 2023

Aave’s protocol V3 was deployed earlier in March 2022 across six networks, including Avalanche, Polygon, Arbitrum, and Optimism. However, after several tests on these networks, Aave governance voted to deploy on the Ethereum Network.

The upgrade incorporates a flexible architecture that helps mitigate user risk and improve capital efficiency when staking or borrowing related assets like stablecoins and liquid staking derivatives (LSDs).

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According to Aave’s statement,

“V3 was designed with a flexible architecture for increased composability and made it possible to build a variety of innovative features on top of the protocol, such as new risk management tools that provide additional security and stability.”

Another exciting feature of the V3 is the high-efficiency mode, also called E-mode. With this, users have higher borrowing power when the collateral provided is correlated to the assets they are depositing and borrowing at the time. This enables users to make the most of their collateral and improves capital efficiency.

The Isolation mode allows users to supply assets as collateral when borrowing only stablecoins. This unlocks listings for less liquid assets without impacting the main market.

V3 also incorporates gas optimization by reducing gas fees by 25%, reducing transaction costs. It also improved logic, making the codes readable, modular, and optimized.

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Chiagoziem Bede Ikwueze

Written by:

Chiagoziem Bede Ikwueze

Writer

Chiagoziem has gathered a wealth of experience, having worked for many prominent crypto-based businesses, including Revain, Whiteboard Crypto, DeRev, The Crypto Cartel, Crypto News, MoneySwitch, Full Value Dan, and Bitcompare. Over the past couple of years, his works have been featured in many publications and places. When he is not writing, he spends time working on his other digital businesses, playing video games, reading books, watching movies, and most importantly, enjoying quality time with loved ones.

About the Author

Chiagoziem has gathered a wealth of experience, having worked for many prominent crypto-based businesses, including Revain, Whiteboard Crypto, DeRev, The Crypto Cartel, Crypto News, MoneySwitch, Full Value Dan, and Bitcompare. Over the past couple of years, his works have been featured in many publications and places. When he is not writing, he spends time working on his other digital businesses, playing video games, reading books, watching movies, and most importantly, enjoying quality time with loved ones.

About the Author

Radica Maneva

Reviewed by:

Radica Maneva

Senior Editor

Radica is a Senior Editor at Bitcompare. She has worked for more than a decade at leading publications as an Editor across various industries, including crypto and finance.

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