Aave v4 will aggregate liquidity from multiple networks via\u00a0a cross-chain liquidity layer.<\/p>\n
Aave, the\u00a0largest\u00a0DeFi lending protocol by TVL, has proposed plans to launch a v4 iteration and validium network within the next three years.<\/p>\n
Announced on May 1, Aave v4 will boast a unified cross-chain liquidity layer (CCLL), aggregating liquidity\u00a0from\u00a0across multiple networks within a single protocol. Aave noted that CCLL would\u00a0be powered\u00a0by Chainlink\u2019s Cross-Chain Interoperability Protocol (CCIP), which completed its\u00a0permissionless rollout<\/a>\u00a0last week.<\/p>\n \u201cAave can soon scale to become a fully cross-chain liquidity protocol,\u201d the proposal said. \u201cThis will allow borrowers to access instant liquidity across all supported networks.\u201d<\/p>\n Aave v4 will also feature automated adjustments to its interest rate curve, dynamic interest rate premiums for riskier assets, smart accounts and vaults allowing users to segregate their borrowing activities, and an updated liquidation engine. <\/p>\n Aave said it hopes to begin prototyping its v4 protocol during Q4 and\u00a0hopes to\u00a0implement the code in Q2 2025. However, it does not expect the CCLL to roll out until 2026 or 2027.<\/p>\n The proposal also outlines plans to launch an Aave Network, which would\u00a0function as\u00a0the primary hub for the Aave protocol and the project\u2019s GHO stablecoin.<\/p>\n Aave proposes utilizing a rollup-like\u00a0validium<\/a>\u00a0architecture for the network, adopting GHO as its network\u00a0token for fees, and using AAVE as the main staking asset for decentralized validators and sequencers. <\/p>\n Aave noted it will monitor the evolution of both Layer 1 and Layer 2 networks before finalizing\u00a0the network\u2019s architecture, but said Aave Network will inherit its security from Ethereum.<\/p>\n The proposal added that \u201cEthereum would remain the home of the Aave DAO and the Aave\u00a0governance\u201d and both Aave and GHO would continue to operate as \u201cmultichain and network-agnostic despite Aave\u2019s plans to launch a bespoke network. Aave is also targeting 2026 or 2027 for the launch of Aave Chain.<\/p>\n Aave is the third-largest DeFi protocol with a total value locked (TVL) of $10 billion, according to DeFiLlama.<\/p>\n Recent research from Token Terminal indicated that Aave has consistently enjoyed a roughly\u00a050%<\/a>\u00a0share of the DeFi lending market over the past three years. Aave\u2019s Marc Zeller\u00a0replied<\/a>\u00a0that\u00a0roughly\u00a075% of the value in DeFi lending protocols is locked in projects leveraging versions of Aave\u2019s codebase.<\/p>\n Aave said its three-year plan seeks to maintain its position as a leading DeFi for the rest of the decade. \u201cThese ideas aim to significantly boost the adoption of the Aave ecosystem and scale DeFi to reach the next billion users,\u201d the proposal said.<\/p>\n Aave\u2019s three-year roadmap also includes promoting the development of real-world asset products built around GHO, expanding Aave onto networks that do not support Ethereum Virtual Machine\u00a0smart\u00a0contracts, and introducing new visual branding licensed to the Aave DAO.<\/p>\n Aave is budgeting 15M GHO and 25,000 stkAAVE ($2.1 million) to complete the first year of the roadmap, with the DAO providing 3M GHO upfront and streaming the remaining assets\u00a0over the course of\u00a0the first 12 months.<\/p>\n The price of AAVE is down 14% over the past week amid the recent digital asset downturn, according to CoinGecko. Aave noted that more than 450,000 wallets currently hold AAVE.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":" Aave v4 will aggregate liquidity from multiple networks via\u00a0a cross-chain liquidity layer. Aave, the\u00a0largest\u00a0DeFi lending protocol by TVL, has proposed plans to launch a v4 iteration and validium network within the next three years. Announced on May 1, Aave v4 will boast a unified cross-chain liquidity layer (CCLL), aggregating liquidity\u00a0from\u00a0across multiple networks within a single […]<\/p>\n","protected":false},"author":2,"featured_media":293826,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[274,273,272,244,266,271,268,270,269,267],"class_list":["post-293823","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-de-fi","tag-crypto-finance","tag-decentralized-finance","tag-liquidity","tag-metamask","tag-pancake","tag-slippage","tag-sushiswap","tag-tronlink","tag-trust-wallet","tag-uniswap"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/293823","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=293823"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/293823\/revisions"}],"predecessor-version":[{"id":293830,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/293823\/revisions\/293830"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/293826"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=293823"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=293823"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=293823"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Aave seeks to ensure future\u00a0dominance<\/h2>\n