Developer: Aave V4 is expected to transform fragmented liquidity into the operating system of DeFi

Jinse Finance reported that the lending protocol Aave stated in a blog post that developers believe Aave V4 is expected to transform fragmented liquidity into the operating system of DeFi. This model can empower the broader DeFi community, enabling everyone to develop based on Aave rather than compete with it. Service providers and integrators can create specialized service experiences while accessing ample liquidity, thus driving innovation within the Aave ecosystem instead of letting innovation become fragmented due to market dispersion. According to data from DeFiLlama, Aave's total value locked (TVL) across 19 blockchains exceeds $45 billions. The project positions V4 as a new infrastructure layer in the DeFi field, aiming to solve the launch challenge where "new markets have to compete with already successful existing markets for the same deposits." This model addresses a core issue in previous versions of the Aave protocol: previously, liquidity was split into multiple small, independent pools. In V4, however, different markets can share a larger, common liquidity pool, eliminating the need to build separate liquidity pools from scratch.