Aave DAO Advances V4 Upgrade, Enters Community Discussion Phase

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Aave DAO has launched the community discussion phase for the Aave V4 blockchain upgrade, following 100% approval of the ARFC proposal. This non-binding phase aims to gather community feedback prior to a formal AIP vote and mainnet deployment. Aave V4 will introduce a Hub and Spoke architecture, unifying liquidity and enabling flexible lending rules. The upgrade will also enhance GHO integration, liquidation mechanisms, and risk pricing, transforming the protocol into a more adaptable on-chain financial infrastructure.

ChainCatcher report: Aave DAO has passed the Aave Request for Comment (ARFC) proposal vote, officially launching the community discussion process for the deployment of Aave V4. The proposal received 100% support on the governance platform, marking a critical step toward the protocol’s next major upgrade. The ARFC is a non-binding phase designed to gather community feedback and refine the proposal; it will be followed by formal on-chain Aave Improvement Proposal (AIP) voting and mainnet deployment. Aave V4 is expected to be deployed this year. This upgrade introduces a new Hub and Spoke architecture, unifying liquidity through a central Liquidity Hub while allowing multiple Spoke modules to define distinct lending rules, risk parameters, and collateral strategies—enhancing capital efficiency and enabling more granular risk isolation. Additionally, V4 will address existing liquidity fragmentation, support richer market structures, strengthen integration with the native stablecoin GHO, 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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