Known as AaveDAO, the crypto lending protocol community Haha is currently voting on whether or not the latest loan protocol update – called Aave V3 – should be deployed to the Ethereum (ETH).
The previous version – Aave V2 – on Ethereum controls $3.96 billion in liquidity and is the largest deployment of the protocol across all platforms. blockchainssince it corresponds to more than 70% of the total blocked value of the crypto protocol.
The decision on how to bring the new version to Ethereum has a direct impact on the future of Aave V2, which is currently the largest decentralized lender in the decentralized finance ecosystem (DeFi) of Ethereum.
The community is deciding whether to issue a new version of the application or upgrade the old update.
So far, 99% of votes have been in favor of re-deploying Aave V3 on Ethereum rather than upgrading to V2. Voting will close on October 11 at 7:00 am Brasília time.
Pros and cons
Both approaches to deploying versions of Haha have their pros and cons.
One of the contributors to Haha, Bored Ghosts Developing (BGD) has been working on coordinating and executing parameters for a possible upgrade from Aave V2 to Aave V3 on Ethereum. Recently, the team presented a summary with possible effects of the two approaches.
One of the arguments in favor of a new deployment is that it is the easiest route to take. Aave V3 can be easily deployed on Ethereum, and transaction costs will be cheaper than upgrading the old version of standalone contracts.
A new deployment will also not require a security audit, as this has already been performed, while upgrading would require another round of audits.
On the other hand, a new deployment will fragment the liquidity of Haha on Ethereum between the two versions. Upgrading the old version would avoid this issue and remove the need for users to migrate from their positions in V2 to V3.
For Bored Ghosts Developing, a new deployment is better than upgrading an old version.
“Our view is that the advantages of a new Aave V3 deployment on Ethereum outweigh the advantages of upgrading the current standalone Aave V2 contracts,” the team stated.
Aave versions on other blockchains
To date, Aave V3 has been deployed on several other blockchains and second-tier solutions: Arbitrum, Fantom, Harmony, Optimism, Polygon and Avalanche.
In the case of Polygon and Avalanche, each had the old version of Haha operating on their blockchains prior to the development of the new version. This meant that the community had to decide between deploying the new version – V3 – or upgrading from V2 to the new version.
Aave DAO favored the first option, leading to the coexistence of both versions of Haha in Polygon and Avalanche.
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Source: Moneytimes
I am a journalist with over 6 years of experience working in the news industry. I currently work as an author for Global Happenings, and my coverage focuses on Technology news. I have written for various publications, including Reuters, The New York Times and The Guardian.
