Business News Report Technology
May 02, 2024

Aave Labs Unveils ‘Aave 2030’ Proposal Including Aave V4 Protocol Launch

In Brief

Aave Labs unveiled the “Aave 2030” proposal within the community to foster discussions about future vision plans beyond 2030.

Aave Labs Unveils 'Aave 2030' Proposal Including Aave V4 Protocol Launch

Entity responsible for developing the decentralized finance (DeFi) lending protocol Aave, Aave Labs unveiled the “Aave 2030” proposal within the community to foster discussions about future vision plans beyond 2030.

The proposal outlines Aave Labs’ intention to introduce Aave V4, the forthcoming version of its protocol, in 2025. Additionally, it aims to implement a fresh visual identity.

Over the course of the upcoming 2-3 years, Aave Labs intends to roll out the cross-chain liquidity layer (CCLL) to expand and transform into a cross-chain liquidity protocol. Moreover, it aims to concentrate on pioneering solutions for the adoption of RWA-based offerings created around GHO, which will contribute to scaling GHO as an infrastructure. Additionally, Aave Labs plans to incorporate at least one more non-EVM chain.

Additionally, Aave Labs aims to roll out new DeFi products and offer substantial involvement to the Aave DAO in its governance and exposure, recognizing the potential of these technologies to drive further growth for Aave and GHO.

To execute the initial phase of the three-year plan, Aave Labs intends to allocate 15 million GHO and 25,000 stkAAVE tokens to support research, technical engineering resources, non-technical resources, and auditing needs.

Aave operates as a decentralized and permissionless DeFi platform, enabling users to lend and borrow cryptocurrencies promptly. It employs liquidity pools comprising cryptocurrencies, eliminating the need for central intermediaries. Lenders can contribute liquidity to these pools to earn interest, while borrowers can access overcollateralized loans. As per DefiLlama, the present total value locked (TVL) on Aave is recorded at $9.87 billion.

Aave V4 Protocol Update Sparks Debate Borrowed Concepts in DeFi Space

The updated Aave V4 protocol represents a refreshed iteration of its V3 counterpart and will be collaboratively developed with the community. Its architecture is aimed at prioritizing modularity to improve efficiency, optimizing capital usage, minimizing governance burdens, and incorporating the Aave-native stablecoin GHO.

Notably, following the proposal, Curve Finance, a DeFi protocol facilitating the exchange of stablecoins within Ethereum, observed similarities between the liquidation model in Aave V4 and its own crvUSD liquidation model, which was introduced earlier.

Curve Finance shared on social media platform X that they believe “inspiration” doesn’t equate to stealing. They expressed that developing new ideas in a similar direction is beneficial and leads to innovation. However, Curve Finance ironically emphasized that in such instances as with Aave, traditional finance (TradFi) stands little chance of keeping up with DeFi.

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About The Author

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

More articles
Alisa Davidson
Alisa Davidson

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

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