Aave DAO supports the V4 release plan with instant voice
Aave, a decentralized autonomous organization, has backed a proposal to deploy its V4 protocol on the Ethereum mainnet, emerging from weeks of administrative wrangling and widespread support from contributors to upgrade it.
On Monday, the proposal to deploy Aave V4 on the Ethereum mainnet received more than 645,000 votes in favor from the DAO and less than one vote and no abstentions, according to real-time data from the offchain voting platform.
The vote marks a shift from previous divisions within the Aave community, which show broad alignment around the direction of the protocol as it moves toward standardizing V4's deployment.
According to Aave founder Stany Kulekov, the protocol is expected to pass the Aave Improvement Proposal (AIP) vote, a mandatory onchain vote to deploy and enable V4 on Ethereum.
Aave V4 introduces a modular architecture for on-chain credit markets
Aave V4, released by Aave Labs on March 19, introduced a change to a modular protocol design. It includes an architecture designed to separate liquidity from market-specific risk.
Under the model, shared liquidity pools or “resources” provide capital, while “Spokes” define different borrower areas with customized risk parameters and exposure limits. According to Ave Labs, the design “maintains the depth and efficiency of combined liquidity and allows for more accurate risk management.”
Related: Aave management dispute escalates as ACI and Aave Labs publish bipartisan reports
Ave Labs said the new structure is designed to support a wider range of financing use cases, including assets with different risk profiles, maturities or chain dependencies.
According to the proposal, V4 would allow for the creation of new types of bonds and structured credit markets while maintaining consolidated liquidity.
A unanimous vote follows the release of key Aave contributors
The strong support for Aave V4 comes after a period of management tension that saw many major contributors withdraw from The DAO.
On February 20, BGD Labs, a longtime technical contributor, said it would end its involvement with Ave after four years, citing an “inconsistent organizational climate” and a “hostile stance” toward work on the existing version of the protocol.
On March 3, chief executive officer and service provider Ave Chan announced plans to withdraw from the initiative after a conflict over a proposed funding package. ACI founder Mark Zeller said the organization would withdraw after expressing concerns about changes in governance standards and voting.
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