Aave DAO has taken a major step toward launching its highly anticipated V4 upgrade on Ethereum. The proposal recently gained overwhelming support during the Aave Request for Comment stage, signaling strong confidence from the community.
The proposal, first shared on March 13, now moves to the Snapshot phase. If it passes, it will proceed to a binding onchain vote. This marks a critical milestone for one of DeFi’s leading lending protocols.
New Architecture Aims to Boost Flexibility
At the core of Aave V4 is a redesigned “Hub and Spoke” system. This structure focuses on improving liquidity management while reducing overall risk.
Here is how the model works:
- Liquidity Hubs store shared reserves across the protocol
- Spokes manage specific markets with unique rules
- Each market can set its own collateral and borrowing limits
This setup allows Aave to support more specialized lending markets. For example, it can handle different asset types without exposing all users to the same risks.
The initial rollout includes:
- Three hubs: Core, Prime, and Plus
- Ten spokes for various market types
- Assets such as wETH, wBTC, GHO, USDC, USDT, and EURC
Security and Governance Remain Top Priorities
Aave has placed strong emphasis on security ahead of the V4 launch. The protocol has completed about 345 days of combined testing and review. These efforts include audits, formal verification, and stress testing.
In addition, the DAO approved a $1.5 million budget for a public security contest. This step aims to uncover any hidden vulnerabilities before deployment.
Meanwhile, internal discussions continue around Aave Labs’ restructuring plans. Despite this, the V4 upgrade remains a key technical focus for the ecosystem.
With AAVE trading near $110, investors are watching closely. A successful launch could drive new growth and strengthen Aave’s position in the DeFi lending market.
