DeFi protocol Aave to deploy V3 upgrade on Ethereum

• Aave holders approve major technical upgrade dubbed Aave Ethereum V3.
• The vote results showed a total of 706,258 AAVE, or 100% support.
• Aave Ethereum V3 is set for activation following the governance vote.

The Aave community has approved an Aave Improvement Proposal (AIP), a governance proposal seeking to activate Aave V3 on the Ethereum network. 

A total of 706,258 AAVE was staked as 100% of the vote supported the technical upgrade, which will also list WBTC, WETH, wstETH, USD Coin (USDC), DAI, LINK, and AAVE. The community had already pre-approved the tokens.

“The community has spoken and we have the light to deploy Aave Protocol V3 on Ethereum Mainnet. More details to come tomorrow,” the Aave team tweeted.

The proposal was created on 22 January 2023, while voting started a day later and ended on 26 January 2023 at 05:48 UTC +03:00 (Block height 16488207). Currently, the proposal is shown as “queued” on the Aave website, with details that this can be executed within 12 hours.

Aave V3 already deployed on other major chains

Aave V3 is a highly anticipated upgrade set for the Ethereum mainnet,with the improvement proposal following the decision to have V3 deployed afresh instead of a software update to the existing V2 pool.

Notably, AAVE V3 is already live on various major networks, having deployed in March on 2022 on Avalanche, Arbitrum, Optimism and Polygon. But while V3 introduced architecture flexibility and improved composability, the same features did not go live on Aave’s largest market.

Currently, Ethereum accounts for over $5 billion in total value locked (TVL) on Aave’s V2 protocol.

The upcoming upgrade will increase compatibility across V3 pools and reduce general complexity, the AIP read.