"AAVE Honestly Don't Lie to Me V4 is Coming" On the main stage of ETHCC, Stani announced that Aave V4 will be available soon TL'DR ⏹︎ Liquidity lending "chain" abstraction, A chain deposit, B chain borrowing, liquidity pluggable ⏹︎ Soft Liquidation Mechanism (L-LAMM) = Self-selection of liquidation targets ⏹︎ Interest rate model adjustments are all embracing marketization This is what DeFi infrastructure should look like. While other protocols are still struggling with how to survive, Aave is already thinking about how to reshape the entire lending market Let's dive in 🧵 ▶︎▶︎▶︎▶︎▶︎ Aave V4 is really a bit of an upgrade The first is a unified liquidity layer. The biggest headache for V3 before was the problem of cross-chain migration of liquidity, and it took half a day to toss each upgrade. V4 directly engages in a chain abstraction architecture, and the modular design allows the lending module to be plugged and unplugged at any time, so there is no need to toss liquidity migration. Cross-chain lending, where you deposit money in Arbitrum and borrow money in Optimism - this kind of 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 critical. Now the market value is 220 million, an annual growth of 53%, but I always felt almost meaningless before. The soft liquidation mechanism (L-LAMM) copied from crvUSD is really smart, users can choose their own liquidation portfolio, and they can also repurchase collateral with any asset on Aave - this design is a little more flexible than Curve The interest rate model is also automated, so there is no need to wait for the DAO to vote. Previously, the borrowing cost of WBTC and wstETH was fixed, but now it is dynamically adjusted according to market liquidity. ETH continues to be the benchmark asset without premium, and other assets will have to pay a premium depending on the liquidity situation The V4 clearing engine has also been upgraded to support variable clearing factors and batch liquidation, and to be honest, it is not easy for Aave to balance security and innovation so well. Especially given its size, any changes should be made with caution. Now that even asset delisting and treasury management are automated, the burden of DAO governance has been reduced a lot. It can be seen that Aave is determined to make his own stablecoin...