ChainCatcher report: On Monday, the Aave DAO overwhelmingly approved the initial proposal to deploy the next-generation lending protocol, Aave v4, on the Ethereum mainnet. v4 still requires approval through a subsequent formal vote; initially, it will adopt conservative parameters and a streamlined asset configuration to prioritize security. The advancement of v4 previously sparked controversy within the DAO. Two major contributors, Bored Ghosts Developing and the Aave Chan Initiative, both announced they would not seek contract renewals this year, partly due to Aave Labs’ earlier proposal to pause v3 optimizations and adjust lending parameters to encourage user migration. Labs subsequently withdrew the proposal and pledged not to enforce migration. Currently, Aave v3 remains the largest DeFi lending protocol, with over $25 billion in user deposits. Labs stated that v4 employs a hub-and-spoke architecture, enabling customized lending markets without fragmenting liquidity, significantly enhancing the DAO’s revenue potential.
Aave v4 Approved by DAO, Ethereum Mainnet Deployment Countdown Begins
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Summary
Aave v4 has been approved by the Aave DAO, marking the beginning of its countdown to deployment on the Ethereum mainnet. The v4 protocol will undergo a formal vote and will employ conservative parameters to prioritize security. The upgrade sparked internal debates, leading two major contributors to step back. Aave v3 remains the largest DeFi lending protocol, with over $25 billion in deposits. Aave v4 introduces a hub-and-spoke design to support customized lending markets, potentially increasing DAO revenue.
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