Aave V4 Upgrades to Modular Liquidity Infrastructure

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Aave V4 upgrades to a modular liquidity infrastructure, aiming to improve efficiency and reduce fragmentation. The new system uses a unified Hub and Spoke model to share liquidity across strategies while keeping risk isolated. The upgrade includes an ERC-4626-style share model for better accounting and a dynamic liquidation mechanism based on health factors. These changes help optimize the risk-to-reward ratio for users. The design also supports clearer support and resistance levels in asset management.
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