Aave’s decentralized autonomous organization has endorsed a proposal to migrate the V4 protocol for deployment on the Ethereum mainnet, showing widespread support for the upgrade after weeks of governance tensions and contributor departures.
On Monday, the proposal to introduce Aave V4 to Ethereum mainnet received near-unanimous support from the DAO, with over 645,000 votes in favor, less than one vote against, and no abstentions, according to data from off-chain voting platform Snapshot.
This vote marks a shift from earlier divisions within the Aave community and shows broad consensus around the direction of the protocol moving towards formal deployment of V4.
According to Aave founder Stani Kulechov, the proposal is expected to advance towards the Aave Improvement Proposal (AIP) vote, a binding on-chain vote that would allow the protocol to deploy and activate V4 on Ethereum.
Aave V4 introduces modular architecture for on-chain credit markets
Aave V4, proposed by Aave Labs on March 19, introduces a move to a more modular protocol design. It includes an architecture that aims to separate liquidity from market-specific risks.
In this model, a shared liquidity pool, or “hub,” provides capital and “spokes” define separate borrowing environments with tailored risk parameters and exposure limits. According to Aave Labs, this design “maintains the depth and efficiency of integrated liquidity while enabling more accurate risk management.”
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Aave Labs said the new structure is designed to support a wider range of financial use cases, including assets with different risk profiles, maturities, or off-chain dependencies.
According to the proposal, V4 would enable the emergence of new types of collateral and structured credit markets, while maintaining unified liquidity.
Near-unanimous vote follows departure of major Aave contributor
The strong support for Aave V4 comes after a period of governance tensions, including the exit of several core contributors from the DAO.
On February 20, long-time technology contributor BGD Labs announced that it would end its involvement with Aave after four years, citing an “asymmetric organizational scenario” and a “hostile position” towards work on existing versions of the protocol.
On March 3, Aave Chan Initiative, a key governance representative and service provider, also announced plans to exit following clashes over a proposed funding package. ACI founder Mark Zeller said ACI would scale back its operations after he expressed concerns about governance standards and voting trends.
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