The post Aave V4 Slated for Q4 2025 — Here’s What Users Should Know appeared on BitcoinEthereumNews.com. Decentralized finance (DeFi) platform Aave said it will release its V4 update, a major protocol upgrade, sometime in the fourth quarter of 2025, introducing modular lending markets and additional risk controls among new features. The update introduces a “hub and spoke” modular design to Aave to allow for crypto borrowing and lending markets with more custom parameters, without trapping liquidity in different siloes, according to an update from Aave. Liquidity hubs act as central pools for modular spokes; each of the spokes represents a different market with one of three risk profiles and features different borrowing and lending rates, replacing Aave’s current uniform rates. The team wrote: “Each Spoke registers with the Hub, draws liquidity, and, upon repayment, returns both a base rate set at the Hub level and an asset-specific risk premium tied to its collateral composition.” A diagram illustrating Aave V4’s “hub and spoke” architecture. Source: Aave The update includes a new user interface that gives a “unified, wallet-level view” of all the modular spokes, allowing users to see detailed information and route trades through different market modules from the unified overview. Related: $70B DeFi protocol Aave goes live on Aptos in ecosystem expansion Aave V4 will feature dynamic risk configurations to prevent unexpected liquidations of positions due to changes like lowering collateral thresholds. Changing these global parameters in Aave V3 created a risk of liquidation if the user had multiple positions open. The liquidation engine will also shift to a “health-targeted” model, where liquidations do not represent a fixed sum or the entire position, but only enough to bring a loan back up to the desired collateral parameters, allowing the lender to collect while leaving the borrower’s position open. Users will have the option of selecting a “Position Manager” that can automatically execute actions, including withdrawal, borrowing,… The post Aave V4 Slated for Q4 2025 — Here’s What Users Should Know appeared on BitcoinEthereumNews.com. Decentralized finance (DeFi) platform Aave said it will release its V4 update, a major protocol upgrade, sometime in the fourth quarter of 2025, introducing modular lending markets and additional risk controls among new features. The update introduces a “hub and spoke” modular design to Aave to allow for crypto borrowing and lending markets with more custom parameters, without trapping liquidity in different siloes, according to an update from Aave. Liquidity hubs act as central pools for modular spokes; each of the spokes represents a different market with one of three risk profiles and features different borrowing and lending rates, replacing Aave’s current uniform rates. The team wrote: “Each Spoke registers with the Hub, draws liquidity, and, upon repayment, returns both a base rate set at the Hub level and an asset-specific risk premium tied to its collateral composition.” A diagram illustrating Aave V4’s “hub and spoke” architecture. Source: Aave The update includes a new user interface that gives a “unified, wallet-level view” of all the modular spokes, allowing users to see detailed information and route trades through different market modules from the unified overview. Related: $70B DeFi protocol Aave goes live on Aptos in ecosystem expansion Aave V4 will feature dynamic risk configurations to prevent unexpected liquidations of positions due to changes like lowering collateral thresholds. Changing these global parameters in Aave V3 created a risk of liquidation if the user had multiple positions open. The liquidation engine will also shift to a “health-targeted” model, where liquidations do not represent a fixed sum or the entire position, but only enough to bring a loan back up to the desired collateral parameters, allowing the lender to collect while leaving the borrower’s position open. Users will have the option of selecting a “Position Manager” that can automatically execute actions, including withdrawal, borrowing,…