The Aave protocol has completed the v3.3 upgrade, optimizing bad debt handling and liquidation mechanisms

ChainCatcher news, according to official Aave announcements, the Aave v3.3 version upgrade developed by BGD Labs has officially launched. This upgrade mainly optimizes the bad debt handling and liquidation mechanism, paving the way for the upcoming Umbrella security system.

The Umbrella system will replace the existing Safety Module, introducing an automated mechanism that allows users to stake aTokens to earn rewards while absorbing protocol bad debts without the need for governance voting intervention. This system is only open to users without borrowing positions, aiming to enhance the protocol's security, especially to better protect user assets from the impact of bad debts during market volatility.