May 7
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Aave V4 is here, and it's making some meaningful changes comapred to V3. In this video, we break down the key optimizations Aave V4 introduces compared to V3, using a direct side-by-side comparison to put everything into context. We cover the three main things Aave V4 is tackling: Hub & Spoke System — How Aave V4 replaces isolated market liquidity with a unified hub, letting any spoke (market) tap into shared liquidity rather than bootstrapping its own from zero. Risk Premium — A new metric that adjusts your borrow APY based on the riskiness of your collateral. Supplying ETH? You pay the base rate. Supplying a riskier asset like LINK? You pay a fair premium on top — and lenders earn more for it. Liquidations — How Aave V4 moves away from the up-to-50% liquidation model and introduces incremental liquidations based on a target health ratio, so barely unhealthy positions aren't over-liquidated. #DeFi #AaveV4 #DeFiLending #Aave #CryptoEducation #defieducation