Aave DAO Advances V4 Upgrade, Enters Community Discussion Phase

Odaily News Aave DAO has officially initiated the community discussion process for the deployment of Aave V4 through the approval of an Aave Request for Comment (ARFC) proposal vote. The proposal received 100% support on the governance platform, marking a crucial step for the protocol towards its next major upgrade.

The ARFC stage is non-binding, aiming to gather community feedback and refine the plan. It will be followed by a formal on-chain Aave Improvement Proposal (AIP) vote and the mainnet launch process. Aave V4 is expected to complete deployment this year.

This upgrade will introduce a new Hub and Spoke architecture. It will consolidate liquidity through a unified Liquidity Hub, while multiple Spoke modules will define different lending rules, risk parameters, and collateral strategies, thereby improving capital efficiency and enabling more granular risk isolation.

Furthermore, V4 will address the issue of liquidity fragmentation in the existing protocol, support richer market structures, enhance the integration of the native stablecoin GHO, and upgrade the liquidation mechanism.

Aave stated that this architecture will evolve the protocol from a single lending model into a more flexible on-chain financial infrastructure, enhancing liquidity depth and risk pricing capabilities.