Aave V4 Public Testnet and Aave Pro Launch
Aave, a leading decentralized finance (DeFi) protocol, has launched the V4 upgrade on a public testnet. This release includes a developer preview of “Aave Pro,” a new interface designed for professional users and crypto experts. The V4 codebase is now open for community review, moving closer to the mainnet launch.
Developers can test the new system and explore Aave Pro, which offers advanced tools and an improved user experience for active protocol users.
Key Upgrades in Aave V4
Aave Labs introduced the V4 roadmap in May 2024 to address liquidity fragmentation and support a wider range of assets. The upgrade integrates the native stablecoin, GHO, and prepares for future real-world assets (RWAs).
The testnet phase is crucial for ensuring protocol security and stability. This phase allows the community and developers to test new features before mainnet deployment. Aave emphasizes a “security-first” approach throughout V4’s development.
Two major changes define the V4 update:
- Hub and Spoke Architecture: Centralizes liquidity into Liquidity Hubs to reduce fragmentation. This improves capital use and offers better rates for lenders and borrowers. The design enables smoother governance and easier integration of new markets (“Spokes”) without system disruption.
- Risk Premiums System: Links borrowing rates directly to collateral quality. This feature encourages the use of safer assets by adjusting interest rates based on risk, creating a more efficient market.
Security Measures and Next Steps
The V4 codebase has undergone multiple independent audits. Although full reports are still in preparation, Aave plans to publish them before the mainnet release.
Upcoming activities include community feedback, developer testing, and further refinement of Aave Pro and the V4 features.
This public testnet and Aave Pro preview represent the final step before launching on the mainnet. The focus remains on testing the Hub and Spoke architecture, optimizing the Risk Premiums model, and ensuring overall protocol stability.
