The third version of the Aave Protocol, Aave V3, was introduced in November 2021, offering a significant technological upgrade to the leading DeFi platform. Some of the enhancements in the latest version of this platform include the following: Portal This feature lets supported crypto assets seamlessly flow between various Aave V3 markets on different blockchain networks. High-Efficiency Mode (eMode)Borrowers can extract the maximum borrowing power from their collateral using this feature. Isolation ModeThis feature limits exposure to newly listed assets on Aave, providing a specific debt ceiling for borrowing. Improved Risk Management Risk caps and other tools make Aave protocol more secure than before. L2-Specific Features This offers a better user experience and reliability on Layer-2 networks that Aave is deployed on. Community Contribution A more organized codebase drives higher engagement among the community and provides more incentives for participation. Reduced Gas Fees Aave V3 enjoys lower gas fees, bringing down transaction costs by 20-25% overall. Multiple Reward Types Users can enjoy rewards in multiple tokens on the same transaction made in Aave. Improved Decentralization Aave’s decentralized governance system supports adding Risk Admins when updating conditions for listing new tokens.