A significant development has occurred in the Aave (AAVE) ecosystem, one of the decentralized finance (DeFi) protocols.
The Aave community has officially approved the ARFC (Aave Consultation Forum) proposal, which envisions the deployment of Aave V4 on the Ethereum mainnet.
According to information shared on the Aave management page, the proposal aims to deploy Aave V4 on the Ethereum mainnet with a “security-first” approach. In this context, conservative risk parameters will be applied initially, and the system will operate with a Hub & Spoke architecture. Initially, Aave V4 will provide service through a dedicated interface.
In the later stages of the process, it is planned to submit an AIP (Aave Improvement Proposal) that includes full risk parameters. This step will formally complete the code distribution and system activation.
Aave V4 stands out with its modular structure. In the new architecture, the “liquidity hub” will host shared liquidity, while the sub-structures called “branches” will define specific lending environments and risk levels limited by governance. According to the initial deployment plan, three different hubs will be created: Core, Prime, and Plus.
Supported assets include prominent cryptocurrencies and tokenized products such as AAVE, GHO, wstETH, weETH, cbBTC, USDC, USDT, LINK, and XAUt.
*This is not investment advice.
