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Aaveator 5C2C49BE-0B07-4C3F-8D36-B1FB2C7ACC0C Created with sketchtool. 138 Stranger 3 Mar 7 2023 13:19

Aave high efficiency mode - v3 and v2 comparison question.

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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?

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undefined 5C2C49BE-0B07-4C3F-8D36-B1FB2C7ACC0C Created with sketchtool. 0 Stranger 0 Mar 9 2023 13:30

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.