A Look at Aave V4

Aave has led the DeFi lending space for several years and continues to iterate on its core protocol to maintain this lead. Aave initially gained popularity by trading flexibility and governance minimization for simplicity and ease of use. 

As the onchain lending space has become increasingly competitive over the past several years, Aave’s protocol design has moved progressively further on the spectrum towards that of competitors. Aave V4 represents another significant shift in this direction by introducing key features that can be broadly grouped into four categories that will be briefly touched on here: