Home/Aave v4
DeFi Lending Protocol

Aave v42026 Upgrade Explained

Aave v4 launched in 2026 with a modular architecture, better liquidations, real-world asset expansion, and meaningful capital efficiency improvements.

aave.protocol Live
Total TVL$14.5B
Cumul. Deposits$71T+
Networks12+
Security Audits15+
AAVE Token16M max supply
Fee Share100% to stakers
Current VersionAave v4 (2026)
Flash Loans0.09% fee
About

Aave v4

Aave v4 represents the most significant architectural upgrade in Aave's history. The core change is a shift from monolithic to modular design — a hub-and-spoke model where a central hub manages core logic while spokes handle specific asset types and risk profiles. This enables more flexible risk management, better capital efficiency, and the expansion into new asset classes like real-world assets (RWAs).

// protocol.stats
Protocol TypeNon-Custodial Lending
TVL$14.5B
Cumul. Volume$71T+
Networks12+
Supported Assets30+
Stablecoin APY3-8% variable
AAVE Staking100% fee share
Flash Loan Fee0.09%
Versionv4 (2026)
GovernanceAAVE DAO
Features

Why Use Aave?

The most battle-tested DeFi lending protocol — supply, borrow, flash loans, GHO, and now 100% fee sharing for AAVE stakers.

[01]
🔧
Hub-and-Spoke Design
Modular architecture separates core logic from asset-specific modules — more flexible and upgradeable.
[02]
💊
Health-Targeted Liquidations
New liquidation mechanism targets a specific Health Factor rather than fixed percentages — more capital efficient.
[03]
🏢
Horizon for RWAs
Aave Horizon enables institutional borrowing against tokenized real-world assets — bonds, T-bills, real estate.
[04]
⛓️
Non-EVM Expansion
Aave v3 deployed on Aptos as first non-EVM chain. v4 architecture enables broader multi-VM expansion.
[05]
💎
GHO Integration
GHO stablecoin is more deeply integrated into v4\'s collateral and liquidity management systems.
[06]
📈
Plasma Integration
Aave\'s Plasma integration for Ethereum L2 attracted billions in new deposits in early 2026.
Guide

How to Use Aave v4

Step-by-step from wallet connection to earning yield and staking AAVE.

01

Understand What Changed

v4 is primarily architectural — the user interface on app.aave.com remains familiar. The changes are under the hood in how liquidity and risk are managed.

02

Check Your Network

Aave v4 is being rolled out progressively. Check app.aave.com to see which v4 markets are available on your preferred network.

03

Explore Horizon (Institutional)

If you are an institutional user with RWA exposure, the Horizon program enables borrowing against tokenized assets.

04

Note Improved Liquidations

Health-targeted liquidations mean smaller liquidation penalties for borrowers — a meaningful user experience improvement over v3.

05

Follow Governance

v4 features and parameters are actively governed. Follow Aave governance forum (governance.aave.com) to stay current on protocol changes.

Start Earning on Aave Today

Join $14.5B in TVL across 12+ networks. Supply assets to earn yield or stake AAVE for 100% of protocol fees.

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FAQ

Frequently Asked Questions

Everything about Aave v4.

What is Aave v4?
+
Aave v4 is the 2026 upgrade to the Aave lending protocol featuring a modular hub-and-spoke architecture, health-targeted liquidations, the Horizon program for real-world assets, and improved capital efficiency across all markets.
How is Aave v4 different from v3?
+
Aave v3 (2022) added efficiency mode (eMode), portal cross-chain feature, and improved risk management. Aave v4 (2026) adds modular architecture, health-targeted liquidations, RWA credit markets via Horizon, and non-EVM chain expansion.
Do I need to migrate from Aave v3 to v4?
+
Migration is optional and depends on which markets offer the assets and features you use. v3 markets remain active alongside v4. Check app.aave.com for guidance on migrating positions.
What is Aave Horizon?
+
Aave Horizon is a program for institutional borrowing against tokenized real-world assets (RWAs) like Treasury bills, bonds, and tokenized real estate. It enables traditional finance assets to serve as DeFi collateral.
What are health-targeted liquidations in v4?
+
In Aave v3, liquidators can repay up to 50% of a position regardless of how far below 1.0 the Health Factor is. In v4, liquidations are sized to bring the Health Factor back to a target (e.g., 1.1), preventing over-liquidation and preserving more collateral for the borrower.
Reviews

What Users Say

DeFi Developer
★★★★★

"The hub-and-spoke architecture is architecturally elegant. It solves a real problem — the monolithic v3 design required protocol-wide upgrades for any change. v4\'s modularity enables much faster iteration."

Institutional User
★★★★★

"Horizon is the product that brings traditional finance to DeFi in a meaningful way. Borrowing against tokenized T-bills on Aave v4 is a genuine institutional use case that v3 could not support."

Regular User
★★★★☆

"From a user perspective, v4 feels similar to v3 on the surface. The health-targeted liquidations are a meaningful improvement — lost less to liquidators on a recent close call."

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Aave v4 is live — supply, borrow, mint GHO, and stake AAVE for 100% of protocol fees.

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