Aave v4 will mixture liquidity from a number of networks through a cross-chain liquidity layer.
Aave, the largest DeFi lending protocol by TVL, has proposed plans to launch a v4 iteration and validium community throughout the subsequent three years.
Introduced on Could 1, Aave v4 will boast a unified cross-chain liquidity layer (CCLL), aggregating liquidity from throughout a number of networks inside a single protocol. Aave famous that CCLL would be powered by Chainlink’s Cross-Chain Interoperability Protocol (CCIP), which accomplished its permissionless rollout final week.
“Aave can quickly scale to change into a totally cross-chain liquidity protocol,” the proposal mentioned. “This may permit debtors to entry prompt liquidity throughout all supported networks.”
Aave v4 will even function automated changes to its rate of interest curve, dynamic rate of interest premiums for riskier property, sensible accounts and vaults permitting customers to segregate their borrowing actions, and an up to date liquidation engine.
Aave mentioned it hopes to start prototyping its v4 protocol throughout This fall and hopes to implement the code in Q2 2025. Nonetheless, it doesn’t count on the CCLL to roll out till 2026 or 2027.
The proposal additionally outlines plans to launch an Aave Community, which might perform as the first hub for the Aave protocol and the venture’s GHO stablecoin.
Aave proposes using a rollup-like validium structure for the community, adopting GHO as its community token for charges, and utilizing AAVE as the primary staking asset for decentralized validators and sequencers.
Aave famous it is going to monitor the evolution of each Layer 1 and Layer 2 networks earlier than finalizing the community’s structure, however mentioned Aave Community will inherit its safety from Ethereum.
The proposal added that “Ethereum would stay the house of the Aave DAO and the Aave governance” and each Aave and GHO would proceed to function as “multichain and network-agnostic regardless of Aave’s plans to launch a bespoke community. Aave can also be focusing on 2026 or 2027 for the launch of Aave Chain.
Aave seeks to make sure future dominance
Aave is the third-largest DeFi protocol with a complete worth locked (TVL) of $10 billion, in response to DeFiLlama.
Latest analysis from Token Terminal indicated that Aave has constantly loved a roughly 50% share of the DeFi lending market over the previous three years. Aave’s Marc Zeller replied that roughly 75% of the worth in DeFi lending protocols is locked in tasks leveraging variations of Aave’s codebase.
Aave mentioned its three-year plan seeks to keep up its place as a number one DeFi for the remainder of the last decade. “These concepts purpose to considerably enhance the adoption of the Aave ecosystem and scale DeFi to succeed in the following billion customers,” the proposal mentioned.
Aave’s three-year roadmap additionally consists of selling the event of real-world asset merchandise constructed round GHO, increasing Aave onto networks that don’t help Ethereum Digital Machine sensible contracts, and introducing new visible branding licensed to the Aave DAO.
Aave is budgeting 15M GHO and 25,000 stkAAVE ($2.1 million) to finish the primary yr of the roadmap, with the DAO offering 3M GHO upfront and streaming the remaining property over the course of the primary 12 months.
The value of AAVE is down 14% over the previous week amid the latest digital asset downturn, in response to CoinGecko. Aave famous that greater than 450,000 wallets at present maintain AAVE.
