Aave community reaches a milestone in technical upgrade. The V4 design draft was recently made public, and the underlying architectural ideas are quite noteworthy.



This update mainly focuses on four areas. First is the modular restructuring of liquidity—assets can flow seamlessly across pools, breaking the original liquidity silo problem. Second, the isolated markets are significantly enhanced, supporting the integration of over 500 long-tail assets, which means more small tokens will have the opportunity to be borrowed and lent within the protocol.

More interestingly, the upgrade of the smart liquidation system. Chain liquidation has always been a hidden risk in DeFi lending. The new system, by optimizing the liquidation mechanism, is expected to significantly reduce the impact of such risks.

According to plan, community voting will officially start in October, giving the market ample time to understand and discuss these changes. For players who have long been paying attention to the evolution of lending protocols, this wave of updates means that the entire ecosystem's risk management and asset accommodation capabilities are being elevated.
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LiquidationAlertvip
· 6h ago
Liquidity modularization sounds good, but the key is whether it can truly be implemented after the October vote... 500+ long-tail assets sound crazy, but I'm worried that if the liquidation mechanism doesn't keep up, another explosion might happen.
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BuyHighSellLowvip
· 6h ago
The liquidity island is finally about to be broken. If this wave of V4 can be implemented... the lending ecosystem is probably going to be reshuffled.
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MentalWealthHarvestervip
· 6h ago
Seamless liquidity flow? Sounds great, but I don't know how it will actually turn out. Can the trap of chain liquidations be filled?
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MidnightTradervip
· 6h ago
Liquidity islands are finally about to be broken, and this time V4 feels like it has real potential. Over 500+ long-tail assets are coming in, is the spring for small tokens approaching? But when it comes to the liquidation mechanism... it depends on how it is optimized; otherwise, it will still be a mirage.
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