Aave Labs debuts V4 roadmap in series of governance proposal

DeFi • May 1, 2024, 7:55PM EDT

Quick Take

Aave Labs unveiled its plans for Aave V4, holding up its long list of new and improved protocol features up to public scrutiny.

Aave AAVE +0.43% Labs unveiled a trio of governance proposals on Wednesday to guide its development of Aave V4.

The Aave V4 roadmap, which is in the advanced research stage, proposes several improvements to Aave’s lending platform, such as improved support for its native GHO stablecoin and lower transaction fees, the protocol said Wednesday in a post on its governance forum. The proposal also reveals developers’ plans to automate the calculation of the protocol’s interest rates for borrowing and part of its decentralized autonomous organization’s (DAO) governance process.

"Aave V4 marks a significant advancement in DeFi, engineered to establish new frontiers in capital efficiency, risk management and scalability," Aave Labs said Wednesday on X.

Aave V4's release is slated for halfway through 2025. The upgrade's rollout forms part of a broader initiative called Aave 2030, which aims to dramatically overhaul the protocol’s look and feel in equal measure by 2030.

Aave V3, the protocol’s current iteration, was launched two years ago on several networks and went live on the Ethereum mainnet in early 2023.

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About Authors

Elizabeth Napolitano is a data reporter covering business and technology news, with a focus on cryptocurrencies. Prior to joining The Block, Elizabeth reported on BigTech, AI, crypto and videogames for CBS Moneywatch. As a CoinDesk reporter, she covered DeFi, NFTs and U.S. courts. She holds an MA in Journalism from CUNY. Follow her on X: @LizKNapolitano

MK Manoylov has been a reporter for The Block since 2020 — joining just before bitcoin surpassed $20,000 for the first time. Since then, MK has written nearly 1,000 articles for the publication, covering any and all crypto news but with a penchant toward NFT, metaverse, web3 gaming, funding, crime, hack and crypto ecosystem stories. MK holds a graduate degree from New York University's Science, Health and Environmental Reporting Program (SHERP) and has also covered health topics for WebMD and Insider. You can follow MK on X @MManoylov and on LinkedIn.