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Aave CEO and founder Stani Kulechov has broken his silence on a major upgrade coming to Aave in Q4, 2025.
The Aave v4 upgrade is anticipated to be one of the major events in DeFi in 2025, including features such as a Hub-and-Spoke architecture, reinvestment module and others, boosting Aave liquidity and saving gas.
The upgrade will also include UX improvements and a new liquidation engine. The Reinvestment Module would help Aave earn more from unused capital, utilizing idle liquidity.
On Sept. 15, the Aave founder informed the crypto community of the Aave v4 upgrade roadmap, which highlights where the project is currently at in its development.
Aave CEO reacts
The Aave founder commented in reaction to a tweet highlighting the features of Aave V4, "very nice overview of the Aave V4 feature," adding that the Reinvestment Module was not part of the initial design.
"Interestingly, the Reinvestment Module wasn’t part of our original design a couple of years ago when we laid down the protocol architecture. It actually emerged later as an unexpected, but exciting, last-minute addition," Kulechov added.
The Aave CEO explained the reinvestment feature further as one that allows the protocol to deploy pool float into low-risk, highly liquid yield strategies, creating additional efficiency for LPs. The feature is somewhat inspired by Ethena’s rebalance to USDtb but applied natively within Aave.
The Aave team shared the launch roadmap for the Aave upgrade on Sept. 15, revealing a recent V4 Development Update.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team