So i heard @aave V4 is going live soon, so i decided to do some research by reading their document on "the potential of V4", so I decided to shar with y’all. First of all, what’s Aave? It’s one of the biggest DeFi protocols where anyone can lend and borrow crypto without banks. Liquidity providers earn yield, borrowers put down collateral, and every interaction is managed by smart contracts. They also have a token, $AAVE, which isn’t just for show, it powers governance, staking for safety, and helps the system capture revenue. HERE’S WHAT V4 IS BRINGING Hub & Spoke Architecture Liquidity Hubs are the core pools; Spokes plug in with different risk parameters, custom strategies, or niche markets. This helps liquidity to be used more efficiently rather than fragmented. Custom Risk Profiles for Spokes Some Spokes may cater to high-risk/high-reward strategies; others could be super conservative, for institutions; risk settings, collateral types, and terms can vary. Collateral...
1.17K
28
The content on this page is provided by third parties. Unless otherwise stated, OKX is not the author of the cited article(s) and does not claim any copyright in the materials. The content is provided for informational purposes only and does not represent the views of OKX. It is not intended to be an endorsement of any kind and should not be considered investment advice or a solicitation to buy or sell digital assets. To the extent generative AI is utilized to provide summaries or other information, such AI generated content may be inaccurate or inconsistent. Please read the linked article for more details and information. OKX is not responsible for content hosted on third party sites. Digital asset holdings, including stablecoins and NFTs, involve a high degree of risk and can fluctuate greatly. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition.