Aave DAO officially initiates the V4 upgrade community discussion process through the ARFC proposal

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Gate News, March 23 — Aave DAO has approved a proposal via the Aave Request for Comment (ARFC) voting, officially initiating community discussions for the deployment of Aave V4. The proposal received 100% support on the governance platform, marking a key step forward in the protocol’s major upgrade. The ARFC is in a non-binding phase, aimed at gathering community feedback and refining the plan. It will later proceed to an official on-chain Aave Improvement Proposal (AIP) vote and mainnet deployment, expected to be completed this year.

This upgrade will introduce a new Hub and Spoke architecture, integrating liquidity through a unified Liquidity Hub. Multiple Spoke modules will define different lending rules, risk parameters, and collateral strategies, enhancing capital efficiency and enabling more granular risk isolation. Additionally, V4 will address liquidity fragmentation issues in the current protocol, support more diverse market structures, strengthen native stablecoin GHO integration, and upgrade the liquidation mechanism. Aave states that this architecture will evolve the protocol from a single lending model into a more flexible on-chain financial infrastructure, improving liquidity depth and risk pricing capabilities.

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