Introduction to AAVE
Aave is a decentralised non-custodial liquidity market protocol where users can participate as depositors or borrowers. Depositors provide liquidity to the market to earn a passive income, while borrowers are able to borrow in an overcollateralised (perpetually) or undercollateralised (one-block liquidity) fashion.
Now live, Aave V3 builds upon the foundational elements of the Aave Protocol (e.g., aTokens, instant liquidity, stable rate, etc.) with groundbreaking new features that span from increased capital efficiency to enhanced decentralization.
If you’re using AAVE for the first time (or just need a refresher course), follow the guide below:
Go to https://app.aave.com , connect your wallet and set your network to “Arbitrum”.
Deposit & borrowing: “Assets to supply” shows the assets you can deposit; “Assets to borrow” shows the assets you can borrow.
Click “Supply” to deposit assets.
Click “Borrow” to lend assets .
Account details: you can view the details of user assets on the Dashboard page.
Click “Repay”!
Click “Withdraw” to withdraw the deposit, the first operation needs to be authorized by clicking “Approve to continue”.
Then click “Withdraw ETH”!
Markets: you can learn about the asset deposit and borrow scale, deposit and borrow interest rates and other datas.
Click “Details”!
Staking：AAVE holders can stake their AAVE in the Safety Module to add more security to the protocol and earn Safety Incentives. In the case of a shortfall event, up to 30% of your stake can be slashed to cover the deficit, providing an additional layer of protection for the protocol.
Governance: Aave is a fully decentralized, community governed protocol by the AAVE token-holders. AAVE token-holders collectively discuss, propose, and vote on upgrades to the protocol. AAVE token-holders can either vote themselves on new proposals or delagate to an address of choice.
V3 Features:
The release of V3 makes the Aave Protocol one of the most advanced, secure, and efficient DeFi protocols across the ecosystem. With the introduction of key new features, Aave V3 provides greater capital efficiencies, increased security, and cross-chain functionality, while facilitating increased decentralization across the protocol and throughout the ecosystem.
Powerful new features include:
Portals: A highly anticipated feature, Portals offer only “permit listed” bridge protocols, voted upon by Aave governance, which facilitate cross-chain transactions, allowing assets to seamlessly flow between Aave V3 markets over different networks;
High Efficiency Mode: Also known as “E-Mode,” users have access to higher borrowing power within the same asset category, allowing borrowers to extract the most out of their collateral;
Isolation Mode: Newly listed assets "isolated" by Aave governance can only be used as collateral up to a specific debt ceiling. Within Isolation mode, users can only borrow assets of a particular type (e.g., stablecoins, ETH/wETH) and cannot simultaneously use other assets as collateral, limiting exposure and risks to the protocol from newly listed assets;
L2-Specific Features: Designs specific to Layer 2 networks to improve user experience and reliability. The Aave Oracle network continues to be powered by Chainlink;
Community Contribution: Facilitates and incentivizes community usage through a modular, well-organized codebase;
Gas Optimization: Gas costs of all the functions are reduced by around 20-25% across the board;
Risk Management Improvements: Provides additional protection for the protocol through various risk caps and other tools.
To learn more about the AAVE V3, you can go to the AAVE official website and Discord：