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    Aave V3

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    TL;DR

    Earn interest, borrow assets, and build applications

    Dossier

    ## Overview Aave V3 is a decentralized lending protocol that enables users to deposit cryptocurrency assets and earn interest, while simultaneously allowing other users to borrow those assets by providing collateral. The protocol operates on a peer-to-pool model where depositors supply liquidity to asset pools and borrowers access that liquidity by locking up collateral worth more than their loan amount. Aave V3 represents the third major iteration of the Aave protocol, introducing architectural improvements and new risk management tools that expand the use cases beyond simple lending and borr