The Aave Protocol is decentralised non-custodial liquidity protocol where users can participate as suppliers, borrowers or liquidators. Suppliers provide liquidity to a market and can earn interest on the crypto assets provided, while borrowers are able to borrow in an overcollateralized fashion. Borrowers can also engage in one-block borrow transactions (”flash loans”), which do not require overcollateralization.
V3 of the Aave Protocol augments the core concepts of Aave Protocol (aTokens, instant liquidity, stable rate borrowing, credit delegation, etc.) with new features in following area.