Version 2 of decentralized lending protocol Aave (AAVE) has launched on the public testnet, according to a blog post published on Nov. 11.

• First announced in Aug. 2020, Aave V2 will bring a host of improvements to the platform, including debt tokenization and native credit delegation, fixed rate deposits, private markets, and seamlessly being able to repay debts with collateral
• Users can test the upgrade on the Kovan network, and use a faucet to get tokens for feature testing
• The protocol change is undergoing 4 separate audits and formal verification, which are set to be completed before launch
• The shift towards Aave V2 follows the recent handing over of governance to the community, which established complete decentralization of protocol's governance
• On Oct. 6, Aave had converted its LEND tokens into AAVE on a 100:1 ratio as a part of its tokenomics upgrade, one of the protocol’s most important milestones since launch