Aave’s Hotly Debated V3 ETH Pool Up for On-chain Vote

Group governance at open supply liquidity protocol Aave is voting to find out whether or not it ought to activate its V3 Ethereum pool. Nonetheless working on Aave V2, at the moment, the Ethereum pool is by far the biggest, with $5.6 billion in complete worth locked.

Aave V3 was deployed in March 2022 onto varied networks together with Polygon, Avalanche, Arbitrum, Optimism, Fantom and Concord. However the Aave neighborhood wrestled with how greatest to deal with the huge Ethereum pool.

There have been two essential choices: one was to improve present V2 contracts to the brand new V3 code, and the opposite was to deploy new V3 contracts and depart present V2 deployment unchanged.

Upgrading would have allowed the protocol to maintain the addresses of key contracts (equivalent to Pool, Addresses Supplier, aTokens, debt tokens, and so forth.) however could be technically tough to implement. The second choice — deploying V3 contracts and leaving V2 contracts unchanged — was safer, nevertheless it locations the burden of transferring deposits to V3 on Aave customers.

“Upgrading the Aave Protocol Ethereum V2 to V3 market instantly would have certainly created some seamless experiences for the customers, on the similar time creates an occasion that will require lot of safety procedures and locations substantial belongings in danger,” Stani Kulechov, founder and CEO of Aave, wrote.

Kulechov leaned towards creating a very new market, as he believed it was extra useful resource environment friendly and gave the Aave neighborhood extra time to overview belongings inside the protocol.

“Most significantly, [a] new market could be [a] safer resolution and provides much less danger,” Kulechov wrote.

The neighborhood finally agreed with Kulechov and voted in favor of this feature — deploying a brand new V3 pool as a substitute — with 99.9% of voters in settlement.

If the newest proposal is authorised, it’s going to activate the Aave V3 Ethereum pool which incorporates the itemizing of WBTC, WETH, wstETH, USDC, DAI, LINK, and AAVE tokens.

On the time of writing, 100% of votes forged up to now are in favor of activating the V3 ETH pool, however the vote has not but reached quorum. Voting on the proposal will finish in two days.

A spokesperson for Aave was not instantly obtainable for remark.