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- Aave V4 introduces the Cross-Chain Liquidity Layer (CCLL) for seamless collateral and borrowing across blockchains.
- Supporting both EVM and non-EVM chains like Aptos, V4 enhances scalability and transaction efficiency.
- With $41.7B TVL, Aave is poised to capture more DeFi market share and lead the next phase of innovation.
Aave, decentralized finance’s (DeFi) top lending protocol by total value locked (TVL), is gearing up for the planned launch of Aave V4 in Q4 this year. The next version is expected to bring a number of important additions, for example, extra scalability and compatibility across chains.
Introduction of the Cross-Chain Liquidity Layer (CCLL) One of the biggest changes in Aave V4 is the added feature to serve as a CCLL. This layer will pool liquidity across all connected blockchains so an individual can use assets as collateral on one chain and borrow against them on another.
Aave V4 Cross-Chain Transactions and Testing
Leveraging Chainlink’s Cross-Chain Interoperability Protocol, it offers fast and smooth transactions on various blockchain networks. It will also support both EVM and Non-EVM chains like Aptos.
Full Aave Launch has been announced, with completed checkpoints and next moves. The update is now undergoing testing and review internally. Prior to full launch, Aave Labs will make tools available, including a public testnet with a new UI, full documentation, and an open-source codebase. This availability will permit the community to try out the new features ahead of their release.
Source: governance.aave.com
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As of September, Aave Labs leads the DeFi lending market with a TVL of $41.722 billion, making it a clear player in the market. That’s roughly half the $84.1 billion in total TVL in the whole of DeFi, according to DeFiLlama data. This impressive growth in TVL fortifies Aave’s dominance and provides an excellent platform for the V4.
Source: DefiLlama
New Features Empower Users with Scalability and Cross-Chain Control
Aave V4 will take off from the achievements of Aave V3 while making it even more secure, flexible, and gas efficient. A template derived from the Open Source Funding Agreement (OSFA) by Compound Labs, utilized under the MIT license, will also be part of the new right.
This will enable users to have greater control over their lending and borrowing operations. Aave V4 enables greater scalability and cross-chain transactions, which are intended to help it capture more market share in the DeFi lending space.
Aave V4 positions the platform to lead DeFi. With the DeFi landscape maturing, Aave is leading the next phase of innovation, bringing additional flexibility to users and increasing access to liquidity across several chains.
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