Based on Bitjie.com, Aave is preparing to launch its most ambitious upgrade yet—Aave V4—expected in Q4 2025. The upgrade introduces a hub-and-spokes architecture designed to address the issue of profit-driven liquidity, where short-term capital flows in and out based on incentives. This structural reform aims to stabilize liquidity pools and support sustainable DeFi growth by centralizing liquidity, modularizing risk, and enabling institutional adoption. The new model also includes a re-investment module to boost capital efficiency and a DAO-driven governance framework to control risk exposure.
Aave V4 to Launch in Q4 2025 with Hub-and-Spokes Model to Tackle Profit-Driven Liquidity
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Summary
Aave V4 is set for a token launch in Q4 2025, introducing a hub-and-spokes model to manage profit-driven liquidity. The upgrade shifts to a centralized liquidity structure, modular risk, and a re-investment module to improve capital efficiency. A DAO-led governance system will oversee risk controls, aiming to attract institutional adoption and stabilize DeFi growth.
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