DFP-25: Integrate with Aave V3 on integrated chains

Header Content
Author Edson Ayllon (relativeread), Philippe
Created 2022-4-1
Status Draft


Upgrading contracts to support Aave V3 allows managers to benefit from the changes of the latest Aave deployment. As well as opening Aave for Optimism managers.

Aave introduces the following:

  1. Interest on assets through lending
  2. Leveraged shorts and longs through borrowing
  3. Yield farming strategies through borrowing and using borrowed funds on other protocols
  4. Hedging strategies utilizing shorts


Aave is a lending and borrowing platform.

Aave V3 introduces the following:

  • Isolated markets (single collateral margin) introducing new assets
  • High loan-to-value ratio given borrowing the same asset as used for collateral

Aave V3 to be added to Polygon and Optimism and any future chains dHEDGE launches on.


Aave V2 contract guard will be modified to support V3 changes. On Polygon, the contract guard for both Aave V2 and V3 will coexist, allowing managers to still use V2 pools, and migrate at their own pace.


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