Aave DAO advances V4 upgrade, entering community discussion phase

Aave DAO has officially initiated the community discussion process for the deployment of Aave V4 through the Aave Request for Comment (ARFC) proposal vote. This proposal received 100% support on the governance platform, marking a key step for the protocol towards a new round of significant upgrades.

The ARFC is a non-binding phase aimed at collecting community feedback and optimizing the proposal, after which it will enter the formal on-chain Aave Improvement Proposal (AIP) voting and mainnet launch process. Aave V4 is expected to be deployed this year. This upgrade will introduce a brand new Hub and Spoke architecture, integrating liquidity through a unified Liquidity Hub, with multiple Spoke modules defining different lending rules, risk parameters, and collateral strategies, thereby enhancing capital efficiency and achieving more refined risk isolation.

In addition, V4 will address the issue of liquidity fragmentation in the existing protocol, support a richer market structure, strengthen 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 to a more flexible on-chain financial infrastructure, enhancing liquidity depth and risk pricing capabilities.