Aave Labs has unveiled an exciting proposal for the next phase of its DeFi lending protocol, Aave V4, as part of a comprehensive five-year roadmap. The proposal, introduced on May 1, seeks community input on upgrading to a next-generation protocol version.
Among the highlights are significant upgrades and expansions to the Aave Network, including a cross-chain liquidity layer and non-Ethereum Virtual Machine (EVM) layer-1 deployments. Additionally, Aave V4 will feature a fresh visual identity, reflecting the platform’s evolution.
One of the most anticipated features of Aave V4 is the United Liquidity Layer, designed to enhance the integration of features such as isolation pools, risk modules, and the native stablecoin GHO. Furthermore, the protocol aims to implement interest rates that adjust dynamically based on market conditions, leveraging Chainlink data oracles.
The proposal also suggests Liquidity Premiums to adjust borrowing costs according to collateral risk profiles and introduces vaults and smart accounts for simplified user management of positions.
To execute the first year of the three-year plan, Aave Labs is seeking a grant budgeted at 15 million GHO and 25,000 stkAAVE, totaling approximately $17 million.
Aave, currently the third-largest DeFi protocol with around $10 billion in total value locked, continues to shape the future of decentralized finance. Despite a recent dip, its native token, AAVE, remains an attractive asset, trading at $83.27, down 87.6% from its all-time high three years ago.
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