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Aave DAO takes step closer V4 deployment with request for comment proposal

The Block
Aave DAO overwhelmingly passed an ARFC vote to begin discussions for deploying the major Aave V4 upgrade on Ethereum mainnet this year.

Summary

Aave DAO has successfully passed an Aave Request for Comment (ARFC) proposal vote, marking the initial non-binding stage toward deploying Aave V4 on the Ethereum mainnet, which is anticipated this year. The vote achieved 100% support.

Aave V4 represents a significant overhaul of the lending protocol, introducing a modular Hub and Spoke design intended to improve liquidity by consolidating assets in the Hub while Spokes manage individual lending rules and risk parameters. This structure aims to solve siloed liquidity, allow for greater risk isolation, and support broader market structures, alongside deeper GHO stablecoin integration and a revamped liquidation engine.

The next step involves Aave Labs publishing a binding Aave Improvement Proposal (AIP) after community feedback and security reviews, which have already spanned nearly 345 days of cumulative security testing. This development occurs amidst leadership changes, including the planned departures of key contributors like BGD Labs and Aave Chan Initiative, following internal governance discussions initiated by Aave Labs CEO Stani Kulechov.

(Source:The Block)