Aave high efficiency mode - v3 and v2 comparison question.


Hi, had a question about Aave high efficiency mode in v3. So in v2 the collateral/borrow values are calculated in ETH, even for like pairs (stablecoin-stablecoin) resulting in poor capital efficiency. In v3 the oracle will directly calculate stablecoin-stablecoin lending and borrow in USD?

Answers 1

Yes is correct, in new pools Aave (comparing Aave lending pool v2) use USD as the quote currency allowing for better efficiency enhancing stable pairs.