After getting its stablecoin (GHO) approved by the community, AAVE—a reputed DeFi and yield farming platform—is now looking for retroactive ecosystem funding. In other words, AAVE is planning to enhance the capabilities of its V3 ecosystem via funding.
How is the Version 3 different?
Unlike the previous versions, AAVE V3 offers different reward options. This feature helps users leverage the protocol tokens differently without missing out on incentive rewards of any kind. Simply put, V3 allows DeFi enthusiasts to make the most of lending, borrowing, and liquidity, providing ample opportunities.
Is AAVE V3 contributing to AAVE’s growth?
If you look at the DeFi TVL (Total Value Locked) figures, AAVE V2 and V3 add up to $7.42 billion. This figure puts AAVE in the list of Top 3 protocols by TVL, next to Lido Finance. If the community approves of the retroactive funding, AAVE— equipped with V3’s diverse capabilities like better stability, improved risk management, and efficiency—can easily displace Lido Finance in the near future.
V3 also comes with layer-2 support, and its growth has worked positively for the AAVE token in general. The crypto in question has moved up by over 51.43% month-on-month, spurred by its new stablecoin. Likewise, Version 3 funding is expected to impact the project favorably.