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Aaveator.
Mar 07, 2023
Expert Q&A

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?

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Aaveator.
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.

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