TLDR
- AAVE DAO passed the V4 proposal with 100% support after a four-day vote
- AAVE V4 introduces the Hub and Spoke model for liquidity efficiency
- V4 includes GHO integration and an upgraded liquidation system
- Aave prepares AIP vote before Ethereum mainnet deployment
- AAVE price gains with 65% surge in daily trading volume
AAVE price is moving higher on March 23 as the Aave DAO approved a key governance proposal tied to the upcoming V4 upgrade. The token traded near $110, up about 2.85% over 24 hours, with trading volume rising sharply.
The move followed confirmation that the Aave Request for Comment proposal passed with full support. The decision advances discussions for deploying Aave V4 on the Ethereum mainnet later this year.
Aave DAO Approves V4 Proposal With Full Support
The Aave Request for Comment stage marks an early step in the protocol’s governance process. It allows community feedback before a binding onchain vote takes place. The proposal received 100% approval after a four-day voting period. This result signals strong alignment among token holders on the next upgrade phase.
Aave founder Stani Kulechov confirmed that the protocol will now move toward the next governance stage. This includes preparing an Aave Improvement Proposal for final approval and deployment.
The process also involves coordination with security and risk contributors. These steps are required before the upgrade reaches the Ethereum mainnet.
New Hub and Spoke Model Targets Liquidity Efficiency
Aave V4 introduces a new architecture known as the Hub-and-Spoke model. This structure is designed to improve liquidity management across the protocol.
The Liquidity Hub will act as a central pool for supplied assets. Different Spokes will connect to it and apply their own lending rules and risk settings. This model aims to reduce fragmentation and improve capital efficiency. It also allows different markets to operate with separate risk profiles under one system.
According to proposal documents, the design allows a wider range of lending activity. It also enables more precise handling of collateral and risk parameters. The upgrade includes deeper integration of Aave’s GHO stablecoin. It also features a redesigned liquidation engine to manage positions more effectively.
Governance Changes and Contributor Exits Continue
The V4 progress comes during a period of internal changes within the Aave ecosystem. Several key contributors have announced plans to step back from their roles. BGD Labs and the Aave Chan Initiative both confirmed they will not renew their contracts. These teams played roles in development and governance processes.
The changes follow a governance proposal that seeks to reshape control within the DAO. The plan includes shifting more authority over revenue and intellectual property. Marc Zeller, founder of the Aave Chan Initiative, said the team will wind down operations over four months. The group will continue to participate in governance during that period.
Despite these changes, the protocol continues to move forward with V4 development. The DAO has emphasized maintaining progress toward deployment.
AAVE Price Gains as Market Activity Increases
AAVE’s price action reflects increased activity following the governance update. The token’s daily trading volume rose by more than 65%, reaching over $448 million. The price increase came alongside broader attention on the upcoming upgrade. Market participants are tracking how the new structure may affect protocol usage.
Aave remains one of the largest decentralized finance platforms, with about $27 billion in total value locked. It operates across multiple blockchains and supports a wide range of assets.
The next phase for Aave V4 involves final governance approval and controlled rollout. The timeline will depend on feedback, audits, and completion of required steps.
