Overview
- Aave released its v4 upgrade on Ethereum in a limited setup with conservative risk settings.
- The new design lets distinct lending markets run on their own yet draw from a shared pool of funds, opening the door to collateral beyond crypto tokens.
- Aave Labs said v4 can reinvest idle liquidity to use funds more efficiently across the protocol.
- Many assets, features, and integrations will go live only after on‑chain governance approves them following disputes over interface fees, contributor roles, and sending more revenue to the DAO.
- The launch follows roughly two years of engineering and security work and invites outside teams to build products for real‑world assets and institutional borrowing on Aave.