Our first cooperation with Aave happened as early as March, barely two months after their mainnet release, when we integrated flash loans for more powerful leverage management of MakerDAO positions.
The next step in our collaboration was adding Aave as an option in our Smart Savings lending dashboard, after which we also integrated Aave flash loans for Compound positions management, where we saw some amazing flash loans happen in the light of DAI/DAI leveraging for COMP farming.
Finally, in order to complete our Aave integration, we introduced a full-fledged Aave dashboard in August, including our signature Boost, Repay and Automation options.
Today, after months in the works, many teased improvements, numerous audits and a while spent on the testnet, the Aave Genesis team is launching Aave v2 and we are very proud to support the new version of the protocol on day one.🚀
What’s new in Aave v2?
To get the full scope of everything that’s new and updated in Aave v2, we suggest reading their official introduction post.
We, on the other hand, will focus on some of our favourite improvements and ones that most benefit our users right now — let’s check those out.
Gas usage optimizations
With how crazy gas prices have been in the past few months, may noticed that Aave transactions could get pricey pretty quickly — well, not anymore.
Aave v2 introduces massive gas usage optimizations, solving a noticeable pain point for many users. With all protocol interactions greatly optimized, this will also consequently reduce the cost of all of our advanced options, such as Boost and Repay, and noticeably improve the cost efficiency of running Automation for Aave.
The optimizations for some actions will allow for up to 50% reduced transaction costs compared to v1.👌
Batch flash loans
With v2, the Aave protocol is introducing the option of executing flash loans from multiple asset pools at once.
This will be very handy in enabling features such as full debt payback of a mixed-borrow portfolio or simply allowing for a much greater total value flash loan than what was previously possible with just one asset.
Flash loans galore!⚡
Lower interest rates on stablecoin borrows
One change specifically beneficial to our users could be the changed interest rate models for stablecoins that will allow for lower borrowing interest rates — something that should be very attractive to all our users using lending protocols to leverage assets.
This is made possible by the reduction of base and slope rates for all stablecoins supported in Aave, including BUSD, DAI, sUSD, TUSD, USDC and USDT.
Migrating to Aave v2
Simple migrating options will be added to Aave and DeFi Saver apps in the following days for anyone wanting to migrate their positions to the new version of the protocol.
What’s next for Aave v2 at DeFi Saver?
We recently introduced staking support for Aave, which is something that will remain unchanged — if you’re already staking AAVE you won’t need to migrate or anything like that. If you were thinking of starting to stake, now is as good as time as any.
Our next features for Aave v2 will include the option to create an instantly leveraged position on any of the supported assets, as well as Automation support for the new version of the protocol. With the improved gas costs in Aave v2, Automation is about to become a much more convenient tool for Aave users.
Moreover, our current plans also include the integration of Aave v2 into the Loan Shifter. The options will include collateral and debt shifts, as well as protocol shifting options for anyone wanting to move from MakerDAO or Compound to Aave, or vice versa.
Congratulations to the Aave Genesis team for the v2 launch!🥳
We’re looking forward to building more amazing features on Aave v2.🛠️