The post Aave Deploys V4 on Ethereum After Governance Approval appeared on BitcoinEthereumNews.com.

Decentralized finance (DeFi) lending platform Aave has launched its V4 protocol on Ethereum after a binding onchain governance vote cleared its deployment.  On Monday, Aave announced the launch of its V4 protocol on Ethereum, introducing infrastructure designed to “expand onchain markets into real-world credit markets.” The company said this includes structured lending, fixed-rate borrowing and tokenized asset-backed credit. The rollout follows a Snapshot vote that gained near-unanimous support for a subsequent Aave Improvement Proposal (AIP), a binding onchain vote that opened on March 26 and closed on Sunday. The proposal passed with about 433,000 votes in favor, or roughly 60%, versus about 282,000 votes against, or nearly 40%. Aave’s path to V4 followed months of governance disputes. BGD Labs said it was leaving in February, citing an “asymmetric organizational scenario,” followed by the Aave Chan Initiative in March over concerns about governance standards and voting dynamics. The launch marks a push by Aave to expand beyond traditional DeFi lending into more complex credit markets, and shows the protocol can still execute major upgrades despite prolonged governance disputes. AIP voting results. Source: Aave Aave V4 rolls out a modular design for onchain credit markets Aave V4 introduces a modular design that separates shared liquidity from market-specific risk, allowing different credit markets to operate with distinct parameters while drawing from a common liquidity pool.  According to Aave Labs founder and CEO Stani Kulechov, the upgrade is designed to shift DeFi toward more active use of existing liquidity. “Aave V4 shifts the focus to the demand side, putting that liquidity to work across real credit markets,” he said. An Aave spokesperson told Cointelegraph that V4 is designed to support a broader range of market structures, including institutional use cases. Related: How a 2.85% price error triggered $27M in liquidations on Aave Though specific…

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Filed under: News - @ March 31, 2026 3:24 am