Aave v4 Launches on Ethereum After DAO Rejects Forced Migration
Aave Labs abandoned a controversial proposal to pause v3 development after major DAO contributors threatened to leave. The DAO then approved v4's Ethereum deployment with near-unanimous support.
Key Takeaway
Labs backed off forced migration after DAO pushback, keeping v3's ₱1.49 trillion ($25 billion) alive while v4 launches.
Aave Labs backtracked on a proposal to pause improvements to v3 after Bored Ghosts Developing and Aave Chan Initiative—two major DAO contributors—threatened not to seek contract renewal. Both organizations called the migration proposal borderline outrageous, saying that pausing the main revenue-maker crossed a line.
Aave DAO subsequently approved the first vote on deploying v4 to Ethereum with near-unanimous support. A second vote is scheduled for the coming weeks to finalize the launch parameters.
Labs responded that while the DAO should align strategically behind v4, the timeline is up for discussion. The company said v3 is a battle-tested protocol that will continue to operate as a core part of the ecosystem for as long as the DAO decides it should. At launch, v4 will serve v3 users with higher capital efficiency and more advanced features.
The DAO proposal outlines a conservative launch strategy. V4 will go live with minimal assets and conservative parameters, with the DAO lifting caps, extending credit lines, and onboarding additional assets as live conditions support it. The hub-and-spoke architecture allows the DAO to configure new Hubs or Spokes as the protocol scales. Bored Ghosts Developing and Aave Chan Initiative will both depart when their contracts expire in 2026.
This article was written based on reporting from Dlnews.
