Aave Interest bearing DAI (ADAI) Price, Charts & Market Data

aDAI v2 primarily serves as a yield-bearing asset for users who wish to earn interest on their DAI holdings. Converting DAI into aDAI v2 enables users to:

• Accrue Interest Automatically: The token balance increases in real time, reflecting the interest earned without requiring manual reinvestment.
• Enjoy Enhanced ERC-20 Functionality: aDAI v2 can be transferred, traded, or integrated into various DeFi protocols, such as liquidity pools and yield farming strategies.
• Access Improved Operational Efficiency: With optimised gas usage and streamlined contract operations, transactions involving aDAI v2 are more cost-effective compared to its predecessor.

With the launch of Aave v2, several technical improvements were introduced over the v1 implementation:

• Direct Fund Custody: In v2, the underlying DAI is held within the specific aToken contract, offering better segregation of funds.
• EIP-2612 Integration: The incorporation of the EIP-2612 permit function allows for gas-efficient approvals through off-chain signatures.
• Optimised Gas Costs: Enhanced contract design reduces transaction costs for deposits, withdrawals, and transfers.
• Simplification of Features: Certain functionalities, such as interest redirection available in v1, were removed to streamline the protocol.

To ensure a seamless transition, Aave provided a migration tool that utilised flash loans to automatically transfer user positions from aDAI v1 to aDAI v2, maintaining the continuity of interest accrual without disruption.