The roadmap of Aave V3 and the new V4 is going slowly. Community members were discussing whether the old one would be replaced soon, but the developers have confirmed that V3 will continue to function as usual even after V4 is released.
In a post on February 22, contributor Expert Kolten wrote on X that there would be no sudden switch to the protocol.
The team wants the ecosystem to evolve slowly. They are researching liquidity migration tools so that users can withdraw their money without having to close their open positions. This functionality may not be available immediately, but it is being researched.
The developers claim that maintaining two versions simultaneously makes sense only in the initial stages of the rollout. In the long run, having liquidity distributed across various protocols may negatively impact efficiency.
Also Read: BGD Labs Announces Exit From Aave After 4 Years
V4 Design Built on Years of Experience
The new version is not starting from scratch. It has been built upon almost a decade of DeFi engineering efforts on previous versions such as V1, V2, and V3. The discussions also included partners, fintech companies, infrastructure companies, and developers.
The launch will be done gradually. The first deposits for V4 may not be much. But the capacity will increase as the performance continues to be good. More collateral will be introduced into the system.
Source: X
The community members are asking for backward compatibility for the current integrations. Some individuals believe that the most crucial element of the migration process is not the speed but the stability of the total value locked. Currently, the total value locked across the cross-chain is over $20 billion.
Aave Price Structure Shows Support Battle Near $100
Market attention is also on the behavior of the token. Crypto investor Sjuul noticed that the asset is testing both diagonal and horizontal levels of support on the 3-day chart. Previously, the price had followed an upward trend line since mid-2023.
Every time the price touched the trend line, buyers appeared. Another area of high demand is between $95 and $105. This area previously resisted price actions in 2023-2024 but is now a support level.
Source: X
If the price remains above $100, traders may look for opportunities to move back up to $150-$180. However, if it closes below the significant support level, it may move the prices down to $70-$80.
Also Read: AAVE Surge Alert: $113 Support Holds as Key Builders Exit Protocol
