AaveV4 will support new collateral asset classes, covering stocks, ETFs, real estate, and more. This is pretty significant: we’ve talked before about how DeFi has been somewhat stagnant in recent years, and the core reason is the lack of high-quality on-chain assets. Lending and derivatives have always revolved around BTC, ETH, and a few other major tokens, while smaller tokens simply can’t qualify as high-quality collateral or underlying assets. The lack of qualified collateral and quality underlying assets has been the main reason for DeFi’s stagnation. Imagine if there were more high-quality assets available in the future—the scale of on-chain lending and derivatives could expand to an enormous size, far beyond the current level. Of course, this will also place higher demands on oracles: remember the flash crash of gold token Paxg on 10/11, which also depegged. As long as real-world assets and on-chain assets haven’t fully bridged liquidity, the liquidity issue causing depegging will always remain a potential risk.