AAVE V3

decentralised non-custodial lending protocol supports over 7 chains
lending - over collateralised to borrow assets in the pool by paying fee with no time limit
flash loan - no over-collateralisation required, loans are paid within the same block with 0.09% fee, favours arbitrage opportunities
liquidation - if a loan's collateral drops below certain loan-to-value (LTV), liquidators liquidate borrows' asset to pay back part of the loan to maintain the health of the protocol

risker assets are list in Isolation Mode
- isolated assets are voted by AAVE token holders
- borrowing restricted to certain stablecoin
- can only supply single isolated asset as collateral in Isolation Mode
Siloed Assets can only be listed as supply-only
- for assets potentially affected by oracle manipulation, e.g. illiquid
- minimise the risk of insolvency of the protocol
- a user borrowing a siloed asset cannot borrow any other asset

maximise capital efficiency when collateral & borrow assets with correlated prices, e.g. stablecoin like DAI, USDT, USDC
borrow assets within Efficient Mode with enhanced borrowing power, up to 97% LTV

allow supplied assets to flow between Aave markets on different networks
depositing assets into the protocol gets aToken as a proof, burning aToken on source chain & mint on destination chain enable asset bridging via aToken
minimise withdraw & redeposit process on multiple chains

AAVE Arc
- tailored for institutional investors by offering a permissioned protocol with know-your-customer (KYC) and anti-money laundering (AML) checks
- separate deployment of the Aave V2 liquidity pool for institutional investors
AAVE RWA market
- partners with Centrifuge to enable Real World Asset (RWA) lending market
- investors - able to invest real world asset from crypto stablecoin
- Issuers - create pools for their assets, then investors deposit stablecoins into the pool to buy the tokens, enabling issuers to borrow stablecoins against these assets

Last updated 2 years ago