If you’re looking for a more in-depth, detailed overview of everything that was introduced and updated in Aave v2, we highly recommend going over their official release post.

The most important benefits that we’ve identified for our users and that matter most to DeFi Saver are:

Gas usage optimizations 

Aave v2 introduces massive gas usage optimizations, solving a noticeable pain point for many users. With all protocol interactions greatly optimized, this will also consequently reduce the cost of all of our advanced options, such as Boost and Repay, and noticeably improve the cost efficiency of running Automation for Aave. The optimizations for some actions will allow for up to 50% reduced transaction costs compared to v1, which is significant, and one of the primary reasons to rely on v2.

Collateral swapping

Collateral swapping is a great tool to avoid liquidations or to utilize better yields offered by the protocol. For example, if the price of your collateral starts to fall, you can simply trade it for a stablecoin so you don’t have to worry about price fluctuations and potential liquidation. This feature also allows you to swap your assets to get the best yields currently available on the market.

Batch flash loans

With v2, the Aave protocol has introduced the option of executing flash loans from multiple asset pools at once. This can be very handy in enabling features such as full debt payback of a mixed-borrow portfolio or simply allowing for a much greater total value flash loan than what was previously possible with just one asset.

Lower interest rates on stablecoin borrows

One change specifically beneficial to our users could be the changed interest rate models for stablecoins that will allow for lower borrowing interest rates — something that should be very attractive to all our users using lending protocols to leverage assets. This is made possible by the reduction of base and slope rates for all stablecoins supported in Aave, including BUSD, DAI, sUSD, TUSD, USDC, and USDT.

Migrating to Aave v2

You can simply and easily migrate from v1 to v2 in case you already haven’t. In fact, we highly recommend it, not only for the basic protocol benefits but especially given that certain DeFi Saver functions like Automation are not available anymore for Aave v1.