Aave V4 to launch testnet by year-end with smart accounts
Smart account for enhanced security and convenience
Aave, one of the leading decentralized finance (DeFi) applications on Ethereum, has announced the Aave V4 update, scheduled to launch in test mode by the end of this year.
The key innovation of Aave V4 is the introduction of the Smart Account feature, enabling users to manage multiple accounts for different purposes without the need for multiple wallet addresses. This will offer greater security and convenience for users.
Unified liquidity with cross-chain capabilities
Another major feature is the implementation of an aggregated liquidity layer to address fragmentation issues seen in earlier versions. This will allow the platform to act as a single liquidity hub without creating separate pools across chains with varying interest rates and risks. Cross-chain liquidity will be facilitated by the Chainlink interoperability protocol.
Better usability, yields, and competitive interest rates
Aave V4 will also overhaul the functionality of the GHO stablecoin and promises higher yields for lenders and more attractive interest rates for borrowers.
The deployment of Aave V4 is already underway, with the testnet launch planned by the end of 2024. A public launch is expected between the first and second quarters of 2025.
Ethereum’s decentralized finance (DeFi) ecosystem has hit a significant milestone, with the total value locked (TVL) surpassing $80 billion, the highest in over two years. Renewed market enthusiasm, spurred in part by Donald Trump’s pro-crypto policy stance, has invigorated key platforms like Uniswap and Aave, which are setting new records for trading volume and deposits.
