Aave v3 vs v4: parallel now; deposit-limit increase unconfirmed
Aave v3 and v4 are set to run in parallel after v4’s launch, according to the Aave governance forum. There is no confirmed policy that v3 deposit limits will rise post‑launch; forum records emphasize coexistence, not higher v3 caps.
Available statements instead point to future parameter adjustments intended to shift activity to v4. Any changes would be subject to on‑chain governance and risk reviews.
Why it matters: migration incentives and Aave governance signals
Migration incentives affect liquidity distribution, risk concentration, and user yields. Governance signals about v3 parameters inform treasury managers and market makers about potential capacity constraints.
Contributors have discussed using parameters to steer usage after v4. “V3 parameters should be gradually adjusted to encourage migration,” said BGD Labs, a core Aave contributor, in a governance post.
Taken together, coexistence with gradual incentive shifts implies a measured transition rather than an abrupt cutoff. The absence of explicit confirmation on raising v3 caps preserves flexibility for risk management.
Immediate impact: deposit limits, supply caps, and user decisions
Until proposals pass, existing v3 deposit limits (supply caps) and borrow caps continue to bind. Users weighing new deposits face potential capacity ceilings and liquidity fragmentation during the coexistence phase.
Fixed caps can reduce incremental inflows when utilization is high, while borrow caps curb concentration risk. Parameter adjustments, if introduced, would likely be phased and reversible through governance.
At the time of this writing, AAVE traded near $123.62 with very high 13.14% volatility and neutral RSI 40.51, based on data from Yahoo Finance. These figures are contextual and do not imply performance expectations.
Context: Aave v4 architecture and terminology
Hub-and-spoke overview and coexistence rationale
Aave v4 introduces a hub‑and‑spoke design with shared liquidity hubs and specialized spokes, according to Aave’s public blog. This architecture supports differentiated risk profiles while preserving capital efficiency, enabling parallel operation during migration.
Definitions: deposit limits (supply caps) and borrow caps
In Aave terminology, “deposit limits” correspond to per‑asset supply caps, setting the maximum amount that can be supplied. Borrow caps limit aggregate borrowing of a given asset to manage tail risk and concentration.
FAQ about Aave v3 vs v4
Are deposit limits (supply caps) on Aave v3 expected to increase once v4 goes live?
There is no confirmed plan to raise v3 deposit limits post‑v4 launch. Governance discussions emphasize coexistence and migration incentives, not higher v3 caps.
What v3 parameter changes are planned to encourage migration to Aave v4?
Contributors signaled gradual parameter adjustments to steer activity toward v4, subject to governance. Specific assets, magnitudes, and timelines remain unconfirmed.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Other Posts
- Amplify 2024: Ohio’s Premier Blockchain Summit
- Polymarket Announces U.S. Beta Relaunch Amid Market Buzz
- China, US Conclude Trade Talks with Focus on Cooperation
- Michael Saylor Denies Bitcoin Sell-Off Amid Large BTC Transfer
- Court Upholds Fed’s Rejection of Custodia Bank’s Request
- EU Opens Antitrust Probe Into Deutsche Boerse and Nasdaq Derivatives Dealings
- Kazakhstan Explores Crypto Reserves Backed by National Funds
- Nordea Bank Introduces Bitcoin ETP Trading for Nordic Customers
- JPMorgan Increases Holdings in BlackRock’s Bitcoin ETF
- U.S. Treasury Proposes New Tax Relief Regulations
- Radiant Capital Faces $50M Loss in Major Security Breach
- SEGG Media Unveils $300 Million Crypto Reserve Plan
- 21Shares Files S-1 With SEC to Launch Hyperliquid ($HYPE) ETF
- Hong Kong Sentences Influencer for Unlicensed Investment Advice
- Franklin Templeton Signals TradFi and Crypto Integration
- Crypto Leaders Address Macro Volatility Amid Market Shifts
- JPMorgan Chase Launches 24/7 Digital Deposit Token for Clients
- MicroStrategy Retains Spot in Nasdaq 100 Amid Criticism
- HashKey Prices IPO at High End, Raises $206 Million
- Capital A and Standard Chartered Explore Malaysia Stablecoin Launch
- Amplify 2024: Ohio’s Premier Blockchain Summit
- Polymarket Announces U.S. Beta Relaunch Amid Market Buzz
- China, US Conclude Trade Talks with Focus on Cooperation
- Michael Saylor Denies Bitcoin Sell-Off Amid Large BTC Transfer
- Court Upholds Fed’s Rejection of Custodia Bank’s Request
- EU Opens Antitrust Probe Into Deutsche Boerse and Nasdaq Derivatives Dealings
- Kazakhstan Explores Crypto Reserves Backed by National Funds
- Nordea Bank Introduces Bitcoin ETP Trading for Nordic Customers
- JPMorgan Increases Holdings in BlackRock’s Bitcoin ETF
- U.S. Treasury Proposes New Tax Relief Regulations
- Radiant Capital Faces $50M Loss in Major Security Breach
- SEGG Media Unveils $300 Million Crypto Reserve Plan
- 21Shares Files S-1 With SEC to Launch Hyperliquid ($HYPE) ETF
- Hong Kong Sentences Influencer for Unlicensed Investment Advice
- Franklin Templeton Signals TradFi and Crypto Integration
- Crypto Leaders Address Macro Volatility Amid Market Shifts
- JPMorgan Chase Launches 24/7 Digital Deposit Token for Clients
- MicroStrategy Retains Spot in Nasdaq 100 Amid Criticism
- HashKey Prices IPO at High End, Raises $206 Million
- Capital A and Standard Chartered Explore Malaysia Stablecoin Launch
- Amplify 2024: Ohio’s Premier Blockchain Summit
- Polymarket Announces U.S. Beta Relaunch Amid Market Buzz
- China, US Conclude Trade Talks with Focus on Cooperation
- Michael Saylor Denies Bitcoin Sell-Off Amid Large BTC Transfer
- Court Upholds Fed’s Rejection of Custodia Bank’s Request
- EU Opens Antitrust Probe Into Deutsche Boerse and Nasdaq Derivatives Dealings
- Kazakhstan Explores Crypto Reserves Backed by National Funds
- Nordea Bank Introduces Bitcoin ETP Trading for Nordic Customers
- JPMorgan Increases Holdings in BlackRock’s Bitcoin ETF
- U.S. Treasury Proposes New Tax Relief Regulations
- Radiant Capital Faces $50M Loss in Major Security Breach
- SEGG Media Unveils $300 Million Crypto Reserve Plan
- 21Shares Files S-1 With SEC to Launch Hyperliquid ($HYPE) ETF
- Hong Kong Sentences Influencer for Unlicensed Investment Advice
- Franklin Templeton Signals TradFi and Crypto Integration
- Crypto Leaders Address Macro Volatility Amid Market Shifts
- JPMorgan Chase Launches 24/7 Digital Deposit Token for Clients
- MicroStrategy Retains Spot in Nasdaq 100 Amid Criticism
- HashKey Prices IPO at High End, Raises $206 Million
- Capital A and Standard Chartered Explore Malaysia Stablecoin Launch
Latest
Press Release
Trust Wallet Launches Cash Deposits, Enabling Users to Convert Physical Cash Into Crypto
Bitmine Immersion Technologies (BMNR) Announces ETH Holdings Reach 4.371 Million Tokens, and Total Crypto and Total Cash Holdings of $9.6 Billion
