In 2023, Index Coop developed and audited a new Aave v3 Leverage Module for Index Protocol.
The Aave v3 Leverage Module is a smart contract that enables leverage trading using Aave v3 as the lending protocol. This module is paired with a Debt Issuance Module v2 that will call functions on this contract to keep interest accrual and liquidation state updated. Each asset is leveraged when using this module (i.e. it is not built for simple lending).