- Aave Labs has unveiled plans to upgrade its protocol from V3 to V4.
- The Aave V4 roadmap is part of a wider “Aave 2030 grant” proposal.
- The timeline for the Aave V4 development is scheduled to run from Q2 2024 until mid-2025.
Aave Labs, the blockchain firm behind the decentralized finance (DeFi) lending protocol Aave, has unveiled plans to upgrade its protocol. The proposed upgrade would lead to the launch of Aave V4, with a new architecture that would introduce novel capabilities to the protocol.
According to the firm’s announcement, Aave V4 would enhance modularity, reduce governance overhead, optimize capital efficiency, and integrate innovations such as the Aave-native stablecoin GHO more seamlessly.
Although the Aave V4 roadmap is in an advanced research stage, the blockchain firm proposes to develop it as part of a wider “Aave 2030 grant” proposal. Aave is adopting a transparent model of development involving the project’s community throughout the feedback and testing phases.
Meanwhile, Aave Labs has scheduled a timeline for the Aave V4 development to run from Q2 2024 until mid-2025 when it fully releases the protocol. According to Aave Labs, it will act as the technical contributor, while the Aave DAO will deploy all code bases made available by Aave Labs and other contributors.
In a recent post on X, the blockchain firm classified Aave V4 as a significant advancement in DeFi. According to the post, the upgrade will establish new frontiers, including capital efficiency, risk management, and scalability. The Aave V4 development is coming about two years after launching the current iteration, Aave V3, on several networks. The current version went live on the Ethereum mainnet in early 2023.
Aave Labs considers its project the largest DeFi protocol, excluding (re)staking. It noted that the protocol has experienced considerable growth in both user base and total value locked (TVL) since it launched in 2022. As of Aave Labs’ announcement, Aave had an average market size of $17 billion and was available on over twelve networks.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
