# Aave executes the v3.3 upgrade across all active instances

> The upgrade replaced pool, configurator, and pool-data-provider implementations; introduced reserve-deficit accounting and deficit-elimination hooks for later Umbrella use; and changed liquidation handling to reduce dust and improve position-wide close-factor behavior.

- URL: https://riadefi.com/on-chain/2025-02-24-aave-v3-all-instances-v3-3-upgrade/
- Type: Upgrade or migration
- Stage: Executed
- Evidence: confirmed
- Materiality: material
- Event date: 2025-02-24
- Version: 1, published 2026-08-22 (first published 2026-08-22)
- Advisor-relevant: no
- Affects: Aave v3 (protocol)

## What happened

Aave governance executed proposal 252 and upgraded all active Aave v3 instances from v3.2 to v3.3.

## What changed

The upgrade replaced pool, configurator, and pool-data-provider implementations; introduced reserve-deficit accounting and deficit-elimination hooks for later Umbrella use; and changed liquidation handling to reduce dust and improve position-wide close-factor behavior.

## What did not change

Aave v3.3 did not itself activate Umbrella or prove that future deficits would be covered. The official discussion says deficit accounting remains separate from aToken exchange-rate accounting and does not imply safety or approval.

## Confirmed

- BGD Labs states that proposal 252 was approved and executed on February 24, 2025.
- The proposal applied to all active Aave v3 instances.
- The upgrade introduced bad-debt logging and burn functionality plus liquidation-engine changes.
- The proposal cites StErMi, Certora, Oxorio, and Sherlock security reviews.

## Still open

- Post-upgrade monitoring was still ongoing in the February 24 update.
- The behavior of the later Umbrella integration and any realized deficit coverage was outside this event.
- Audit completion does not establish absence of defects or advisor suitability.

## What it means for an advisor

- Update the Aave memo's liquidation and deficit-accounting description to v3.3 and verify integrations relying on deprecated reserve-data getters.
- Do not describe Umbrella coverage as live solely because v3.3 added compatible accounting hooks.
- Review client and approved-position assumptions across every active Aave v3 instance because the implementation upgrade was global.

## Sources

1. [Upgrade Aave instances to v3.3](https://vote.onaave.com/proposal/?proposalId=252) · Aave DAO · 2025-02-19
2. [BGD: Aave v3.3 (feat Umbrella)](https://governance.aave.com/t/bgd-aave-v3-3-feat-umbrella/20129) · BGD Labs / Aave Governance Forum · 2024-12-10


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Published by Ketju Research on RIADeFi (https://riadefi.com). Educational research for financial professionals; not investment, legal, tax, or compliance advice.