Aave V2

Aave V2 Introduction

Aave is an open source decentralized lending marketplace. The new features of Aave V2 are as follows:
Yield & Collateral Swap
In DeFi, assets used as collateral are frozen, but now in V2, they are freely tradeable. Users can trade their deposit assets between all currencies supported by the Aave protocol — even if those assets are used as collateral.
Flash Lending Upgrade
"Flash Lending" is the first collateral-free lending option to shake up the DeFi space, spawning many innovative tools and "money LEGOs". Flash loans are also constantly inspiring ideas for new features in Aave V2.
Repayment with Collateral
Allows users to repay directly with their collateral in one transaction, thereby closing their loan positions - smoothly and easily.
Flash Liquidation
Flash loans are a great balance to give everyone access to liquidity so they can take advantage of the financial tools DeFi offers. With Aave V2, liquidators can use flash loans to flash borrow funds from the Aave protocol itself to execute liquidations.
Flash Loan Batching
Flash Loan Batching allows developers to execute flash loans using multiple assets within the same transaction, which means that flash loan borrowers can access almost all protocol liquidity.
Debt Tokenization
In V2, debt positions are tokenized, so borrowers will receive tokens representing their debt. This debt token enables native credit delegation in the Aave protocol and allows borrowers to manage their debt positions from cold wallets.
Local Credit Delegation
Unsecured DeFi lending has become an increasingly popular way to obtain liquidity without the need for existing capital, and local credit delegation will do this on V2 extension.
Gas Optimization
Those who have been using Ethereum recently may have noticed the problem of network congestion and high gas values. To help reduce these costs, Aave V2 introduces gas optimizations that can reduce the cost of protocol transactions by 50% in some cases.
Stable & Variable Borrowing Rates
With Aave V2, borrowers can have both a stable borrowing position and a variable borrowing position in the same wallet, while owning the same underlying assets. This gives borrowers more choice and flexibility to adjust their loan profile, and borrowers can still switch between variable and stable rates at any time.