AAVE won't deceive me. V4 is here On the main stage of ETHCC, Stani announced that the Aave V4 is about to be launched TL'DR ⏹ Liquidity lending "chain" abstraction, A chain storage B chain borrowing liquidity pluggable ⏹ Soft liquidation mechanism (L-LAMM)=choose the liquidation target by oneself ⏹ Interest rate model adjustment fully embraces marketization This is what DeFi infrastructure should look like. While other agreements are still struggling to survive, Aave is already considering how to reshape the architecture of the entire lending market Let's dive in 🧵 ▶ ︎ ▶ ︎ ▶ ︎ ▶ ︎ ▶ ︎ The upgrade of Aave V4 is really something Firstly, the unified liquidity layer. The biggest headache for V3 before was the issue of cross chain migration liquidity, which required a lot of effort every time it was upgraded. V4 has directly implemented a chain abstract architecture, with modular design that allows for the insertion and removal of lending modules at any time, eliminating the need for liquidity migration. Cross chain lending function, where you save money on Arbitrarum and borrow money on Optimism - this gameplay was previously only possible with cross chain bridges like LayerZero, which is also the focus of this liquidity "chain" abstraction The upgrade of GHO is also crucial. The current market value is 220 million, with an annual growth rate of 53%, but I used to think it was almost meaningless. The soft clearing mechanism (L-LAMM) copied from crvUSD this time is indeed smart. Users can choose their own clearing asset portfolio and can also use any asset on Aave to repurchase collateral - this design is more flexible than Curve The interest rate model has also been automated, eliminating the need to wait for DAO voting. Previously, the borrowing costs of WBTC and wstETH were fixed, but now they are dynamically adjusted based on market liquidity. ETH will continue to serve as a benchmark asset with no premium, while other assets will have to pay a premium depending on their liquidity situation The V4 clearing engine has also been upgraded to support variable clearing factors and batch clearing. To be honest, it is not easy for Aave to balance security and innovation so well. Especially considering its size, any modifications must be made with utmost caution. Now even asset delisting and treasure management have been automated, greatly reducing the burden of DAO governance. It can be seen that Aave is determined to develop his stablecoin