Aave Officially Launched 2.0 Mainnet Version, What Does It Mean?

Aave officially launched its 2.0 version of the mainnet with a few network upgrades as we are reading more in the latest altcoin news.

The AAVE token price increased by about 15% after the project announced that V2 is live on the protocol’s mainnet. Less than a year of the release of version one mainnet, the popular Defi project Aave launched the second version with a few network upgrades. The native crypto reacted with a sudden price increase of 15% in a few hours.

The decentralized lending protocol which allows users to borrow, lend and earn interest on different crypto assets launched its V1 mainnet at the start of 2020 so by being an active part of the mid-2020 DeFi boom, the protocol surged to a market cap of more than $1 billion. The team announced the new release of the V2 mainnet with a few network upgrades as well including an improvement from the first undercollateralized loan option in the Aave Flash Loans space. The update from the yield and collateral swap will provide the users with the chance to “trade their deposited assets, across all currencies supporter in the protocol even when they are being used as a collateral.” The company also thinks that this option will help customers avoid liquidations.

Aave simplified the repayments so if the users want to use their collateral to repay the loans in the V1, they would have to withdraw it, use it to buy the borrowed asset, and repay the debt in order to unlock the deposited collateral. This is a four-step transaction process which is replaced by the new feature allowing the users to close their loan positions by paying directly with the collateral. The project upgraded the flash liquidations, debt tokenization, and flash loans as well as the native credit delegation. As far as the V2 migration goes, the users can employ a Flash loan-powered migration toll in order to make the transition simpler without having to close the V1 loan positions.

The protocol’s native cryptocurrency went through a few changes earlier this year as the former LEND token was renamed to AAVE and underwent a 100:1 token split. The new coin went on a roller coaster since the V2 mainnet announcement and the coin traded at about $83 before skyrocketing by 15% to a daily high of $95, thanks to the fact that Aave officially launched its 2.0 version.