【Aave will update its liquidation engine in version V4, introducing dynamic liquidation thresholds and automated auction mechanisms among other optimizations】Golden Finance reports that Aave officially stated on platform X that since its establishment, Aave has handled nearly 295,000 liquidations, amounting to over $3.3 billion. These liquidations protect protocols from bad debts and maintain system health. In light of this, based on the V3 liquidation mechanism, AaveV4 introduces a redesigned optimized liquidation mechanism. Its main advantages include: 1. Introduction of dynamic liquidation thresholds and automated auction mechanisms to reduce manual intervention, improve liquidation speed and capital efficiency; 2. Integration of on-chain oracles and MEV (Miner Extractable Value) protection to reduce slippage and manipulation risks during the liquidation process; 3. Support for partial liquidations and batch processing, allowing borrowers to avoid full liquidation at a lower cost.