An important 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 aims to implement 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 initially be applied and the system will work with a Hub & Spoke architecture. Initially, Aave V4 will provide service through a dedicated interface.
In the later stages of the process, the intention is to submit an AIP (Aave Improvement Proposal), which includes the full risk parameters. This step formally completes code distribution and system activation.
Aave V4 stands out for its modular structure. In the new architecture, the ‘liquidity hub’ will house shared liquidity, while the substructures called ‘branches’ will define specific credit environments and risk levels limited by governance. According to the initial implementation plan, three different hubs will be created: Core, Prime and Plus.
Supported assets include prominent cryptocurrencies and tokenized products such as $AAVEGHO, wstETH, weETH, cbBTC, USDC, USDT, LINK and XAUt.
*This is not investment advice.