Aave Reveals V3 Upgrade, Introducing Layer2 Network Support and Cross-chain Feature

Briefly –

  • Aave announced its next upgrade recently, V3, introducing different vital features.
  • The lending platform will accept a cross-chain functionality, allowing users to move tokens between Aave networks.
  • Aave V3 will decrease transaction times fees while upgrading reliability and user experience.

Aave, a DeFi lending protocol, has declared its next upgrade, V3, which will incorporate improvements in the token listing, user experience, and risk management. The blockchain targets to introduce new functionality and Layer-0 decentralized finance protocol.

Aave to Introduce Layer-0 Protocol

Aave announced the V3 update recently, targeting new functionality on the network. The upgrade will allow DeFi protocol to improve user experience, security, decentralization, and capital efficiency.

It will also decentralize new assets listing. With that, Aave governance can allow entities to list digital coins via on-chain votes. V3 will make it more efficient as the current listing procedure is extensive, requiring proposals.

Administrators and governance members will enable supply caps and borrowing caps to reduce related risks. Moreover, the platform will introduce an Isolation mode for further risk management.

The anticipated update will incorporate some other vital functionalities. They include Ethereum-based Layer2 networks support. That would reduce the fees and time to complete transactions because users can escape congestions in the Ethereum network, improving reliability and user experience.

Also, V3 will introduce another cross-chain functionality, allowing users to move crypto between the Aave ecosystem on various networks, including Ethereum, Fantom, Polygon, and Solana. Meanwhile, Aave confirms V3 as a gateway to next-gen Layer-0 decentralized finance protocol.

Aave Price Ready to Surge

According to the daily price chart, Aave has been trading in a continuous pattern. That comes as the alternative coin encounter multiple obstacles in an attempt to rally. Meanwhile, Aave nears a symmetrical triangle apex, and a break past $364 can trigger upward price actions for the crypto.

The 100- and 200-SMA, coinciding with the prevailing cart pattern’s upper border at $346, remain stiff hurdles, preventing Aave’s higher movements. Rising bast this obstacle can translate to a massive upswing.

However, if consolidations proceeds, Aave will secure massive support around 21-day Simple Moving Average at $318, then 50-day SMA, corresponding with the triangle’s bottom border at $306. Increased selling momentum can have Aave dropping to 23.6% FIB retracement at $286.