Aave will upgrade its Liquidation Engine in the V4 version, introducing dynamic liquidation thresholds and automated auction mechanisms, among other optimization measures

By: theblockbeats.news|2025/12/12 05:15:55
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BlockBeats News, December 12th, the Aave team officially announced on Platform X that since its inception, Aave has processed nearly 295,000 liquidations totaling over $33 billion. These liquidations protect the protocol from insolvency, maintaining system health. In light of this, based on the V3 liquidation mechanism, Aave V4 has introduced a redesigned and optimized liquidation system. Its main advantages include:

· Introducing a dynamic liquidation threshold and automated auction mechanism to reduce manual intervention, increase liquidation speed, and enhance capital efficiency;

· Decreasing slippage and manipulation risks during liquidation through on-chain oracles and MEV (Miner Extractable Value) protection;

· Supporting partial liquidation and batch processing, allowing borrowers to avoid full liquidation at a lower cost.

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