Revolutionizing Crypto: Aave Labs Announces Major Upgrades with Aave V4 Proposal (AAVE)

• Aave Labs, the team behind the DeFi lending platform Aave, has proposed a series of major upgrades and expansions two years after introducing its V3.
• The suggested improvements include Aave V4, Aave Network, a Cross-Chain Liquidity Layer, non-EVM L1 deployments, and a fresh visual identity.
• The most significant architectural change of the latest iteration is the proposed introduction of a Unified Liquidity Layer, which expands on the Portals concept introduced in Aave V3.

Aave Labs proposes major upgrades to its DeFi lending platform, including a new architecture for Aave V4 and a Unified Liquidity Layer. The changes aim to improve liquidity provisioning and streamline user experience.

Aave V4: A New Architecture

Aave V4 is set to be built with a brand-new architecture featuring an efficient and modular design. The biggest architectural change is the proposed introduction of a Unified Liquidity Layer, which expands on the Portals concept introduced in Aave V3. This layer aims to provide a fully agnostic, independent, and abstracted infrastructure for liquidity provisioning. It is also proposed to manage supply/draw caps, interest rates, assets, and incentives while enabling other modules to draw liquidity from it. This would allow the Aave DAO to add or remove borrow modules without the need to migrate liquidity.

Addressing Fragmented Liquidity

The main function of this architecture approach is to facilitate the addition or improvement of borrowing features without overhauling the entire system or the liquidation module. At the sa... Read the full article for FREE at COINOTAG!