An official proposal has just been submitted to the community to implement Aave V4 on the $ETH network
This is not just a regular update, but a complete transformation architecturally, aiming to turn $AAVE into a credit hub for the entire DeFi space.
📊 Breakthrough design "Wheel Axis" separation:
The core point that makes V4 powerful is the abandonment of the previous general liquidity model to shift to a Modular architecture:
Hub: Where all core liquidity (Liquidity reserves) is contained. Liquidity depth is maximized here.
Spoke: Independent borrowing environments connected to the Hub. Each Spoke can freely define its own risk rules, types of collateral, and borrowing conditions without affecting the overall structure of the Hub.
💡 Perspective from the Tis channel: The solution to the "Efficient Capital" problem
Why does Aave have to rebuild so complexly? The answer lies in the explosion of new asset types:
RWA assets and complex credit structures:
You cannot apply a uniform interest rate and liquidation risk between collateralizing ETH and collateralizing Treasury Bonds or Infrastructure Energy.
Risk isolation:
The Hub & Spoke model allows Aave to embrace high-risk assets or unusual structures into separate Spokes.
If a Spoke has issues like hacks or collateral price crashes, the damage will be contained within that Spoke without spreading to the "common pot" in the Hub.
Risk pricing:
V4 allows for premium fees to be charged directly on each type of collateral.
Anyone bringing high-risk assets as collateral will have to pay higher fees, helping to increase revenue for the protocol and fairly compensate liquidity providers.
🚀 Implementation roadmap: "Slow but steady"
Aave V4 will not open the door immediately. The proposal emphasizes that the initial deployment will be extremely conservative:
Launched with 3 main Hubs: Core Hub, Prime Hub, and Plus Hub.
Set very low initial supply/demand caps.
Use the Security Council as an emergency checkpoint.
What do you think of Aave V4's ambitions? Will this architecture be strong enough to help Aave maintain its DeFi throne and push out other competitors? 👇
This article is for informational purposes only and is not investment advice. Please read and consider carefully before making a decision.