Unpacking Aave v3 Upgrades

Transcript

[Music] d5 slate team [Music] it's your boy andy and welcome back to the defy slate youtube channel smash the like button on this video that really helps us out and sit back and enjoy the content thank you very much welcome back to the d5 slate youtube channel we're going to be talking about ave v3 today and why it's so so important for you to be able to use other v3 and their recent upgrades i was actually listening to a podcast um with stani i think yeah it was on banquet a few days ago and they were talking about the upgrades and well one of the ones that really stuck out to me was the cross chain uh kind of

functionality that is now available through ave so of course we have six chains here now um and you're actually able to kind of relay some of this information from each chain uh using ave um to effectively end up eventually in a world where you know you can have your funds on avalanche and then you can borrow against your funds on avalanche on arbitrary or on polygon right so um really interesting stuff kind of coming from v3 let's just hit on the quick features first so isolation mode basically allows you to have um certain assets to be borrowed only in isolation mode so basically this this this won't affect uh the entire market you basically get to open your own uh your

own pool within ave and the reason why they do this is because there's risky assets so for example if like dogecoin you know was in here like some some erc20 of dogecoin and you went to borrow a bunch of money against your doge and doge just collapsed or something crazy then you would have an effect on the entire pool on the entire smart contract but what isolation mode allows you to do is basically just have your own um assets that are listed as isolated assets which have a specific debt ceiling that doesn't uh it doesn't uh um affect the pool so it doesn't really drain out the rest of the people so that's that's cool there's been a lot of innovations recently in lending and

borrowing that have done isolation mode so it's just super solid to see that ave picked that up um high efficiency mode so e-mode it features maximal maximizing capital efficiency so basically um as long as you have your funds in e-mode then you can basically um have a little bit higher uh power to borrow so you can increase your health factor and you can borrow more uh in e-mode so uh pretty interesting how do you enter you just you just toggle e-mode so let's yeah so let's go ahead and do e-mode so we'll go emo we'll go enable e-mode please switch to arbitrary of course switch to arbitrarily so we're going to enable emote if we have enough ease for gas all right we're going to confirm

so e-mode allows you to borrow assets belonging to the selected category stable coins so basically what this is what when you are enabling e-mode um you know you can click enable blah blah blah and then basically you get higher ltv within e-mode but you can only borrow assets within the same category of assets so um if you want to use e-mode you basically have to supply uh you know die or usdt or whatever it is and you basically gotta borrow against it so what i would do is like if i was farming stables here i you know you could really just kind of ramp up how much stables you have farming you could kind of borrow and then redeposit and borrow and redeposit

or you could go and borrow stables here could deposit some stables here borrow up to 95 ltv here um oops what happened okay um so you could borrow like up to 95 ltv um on your stables and then basically go ahead and go into a different yield farming pool so if you're doing if you if you're gonna stay on on arbitrary what you can do is we just made a video on youtube um that is explaining uh the best stable yields so what i would do is i would go ahead and watch this video i'm gonna give it a like while i'm at it and basically on

this video you can have the best stable coin yield on arbitrary and this will tell you where you can where you can take your funds so you could deposit some stables in here borrow against it really really really high at a low rate you know five or five percent six percent and then you could go and get you know double or triple that elsewhere and just kind of make that free yield on extra capital while also your stables are earning yield in ave so emotes pretty tight um i'm not sure why it's not allowing me uh it says cued so yeah clearly something's going on but it's it's all good um the v2 v3 markets yeah so you basically need to withdraw and supply on v2 but uh the last thing is that um gas has been just

dropped dramatically um so that that's you know that's really good so yeah so v3 is definitely a success um you know i think i i think we're gonna start to see a lot more assets being uh supplied here and like just for example right now like on arbor stream here's just a quick 21 available that just came up today um yeah literally just like came up today so um you know there's definitely good yields here good opportunity for you to go into that e-mode um and basically take action um and yeah i mean they're on every chain that's i mean pretty big if you will um i think that they could get on aurora that'll be they'll be pretty tight uh but yeah there's you know there's clearly some decent stable yields uh all around

uh for you to kind of take take advantage of here on of it so yeah excited to see what v3 does to tbl i think overall um you know things are looking good i think this entire ui is very clean and yeah i mean this is uh this is also good um i think i think ave is gonna make a big comeback into uh into the d5 summer if you will um yeah so we are in e-mode right now so you can only borrow stable coins so an email to masses are not borrowable xd email access at all i can only borrow stables right so i need to i and and if i supply eth right then i'm i'm i'm not going to be able to borrow against it on e-mode

uh i don't believe let me try it out right right here and see if it'll work so let's go ahead and supply some eve and let's see if e mode will allow us to borrow stables the the whole point of e-mode is basically just be able to get more collateral to borrow against your or sorry more more assets to be able to borrow against you know the collateral that you have so basically getting you a higher loan to value ratio which allows you just to have more capital efficiency because you basically have more more capital to operate with um yeah so all right so we have supplied that so let's go ahead and borrow uh

you know so we can borrow um let's see so we can borrow i mean we have 52 dollars added and we can borrow 41. that's eight that's 80 and so the reason why we can't borrow that 97 is because we didn't borrow against um we didn't borrow against a stable coin in e-mode you could only borrow against the same collateral so i'm not going to go to d-gen with it we're just going to borrow 35 die and then we're going to go ahead and do some yield farming with that so we're going to go here we're going to confirm that and all we're going to do um for some yield farming is we're just going to go to saddle super cool protocol and we're going to deposit in this

usd uh s pool up we need usdt or die rip all right um we can go ahead and get that available no worries or we can also go to stargate on arbitram and do some yield farming as well um right now we're looking at they don't have dye available but on orbit room looking at about 13 or 14 percent polygon 13 14 so yeah looking good there for sure um and let's see did that go through all right it did so i have a i have a really low health factor here that's not what it's not where you want to be but just for the sake of this

um you know we're doing we're doing a little bit of a lower health factor and then basically the best way for for me to get from uh from stablecoin to um stablecoin stablecoin is probably just go to curve um and go from i can't even just die here come on um i should get us there hope oh okay looks like that's not really even an option here you guys um so that's all good but effectively all i'm trying to do is basically go from borrowing stables at three percent to going ahead and trying to get um you

know something a little bit stronger uh percentage-wise you know like something like this or something like this and just kind of getting that arbitrage and that's what ave allows you to do so yeah guys other v3 is definitely a revolutionary product it's exciting i'm excited to kind of see it play out and thanks for watching