Aave Unveils V4 Liquidation Engine After Processing $3.3B in Liquidations
Aave Unveils V4 Liquidation Engine After Processing $3.3B in Liquidations
🔧 Aave's $3.3B liquidation reveal
Aave has processed over $3.3 billion in liquidations since launch to protect its lending protocol from bad debt.
The DeFi protocol published a detailed blog post introducing V4's new liquidation engine and explaining improvements over the current V3 system.
- Liquidations serve as a critical safety mechanism for lending markets
- V4 aims to enhance the liquidation process with new technical improvements
- The upgrade represents Aave's continued focus on protocol security
Read the full technical breakdown: Aave V4 Liquidations Blog
Liquidations are essential for keeping lending markets safe. Since launch, Aave has processed over $3.3B in liquidations to protect the protocol against bad debt. We've published a blog post introducing V4's new liquidation engine and how it improves on V3's approach.
Golem Project Contributes 1,000 ETH to rsETH Relief Effort
**Golem Project and Golem Foundation have donated 1,000 ETH** to support the ongoing rsETH relief initiative. - The contribution follows similar efforts from other DeFi protocols, including EtherFi, which recently submitted a proposal to their DAO - The relief effort aims to restore rsETH's backing - Multiple protocols are collaborating to assist affected users The coordinated response demonstrates growing solidarity within the DeFi ecosystem during crisis situations.
Ethena Joins Multi-Protocol Effort to Restore rsETH Backing After Bridge Exploit
**Recovery Effort Expands** Ethena has joined the collaborative effort to restore backing for rsETH following the April 18 Kelp DAO bridge exploit. The protocol now has multiple commitments from ecosystem partners including: - Lido Finance (proposal submitted to DAO) - EtherFi (proposal submitted to DAO) - Ethena (latest contributor) **Current Status** - rsETH reserves paused across Ethereum Core, Arbitrum, Base, Mantle, and Linea - WETH reserves on Ethereum Core V3 unfrozen; users can supply again - WETH LTV remains at 0 - rsETH on Ethereum mainnet confirmed fully backed **Background** The incident stemmed from an exploit of Kelp DAO's rsETH bridge. Aave service providers immediately froze affected markets to prevent new deposits and borrowing. Analysis shows potential bad debt scenarios, with recovery plans now in progress. Aave emphasizes that its contracts were not exploited - the issue originated with rsETH's bridge infrastructure. Full incident report: [governance.aave.com](https://governance.aave.com/t/rseth-incident-report-april-20-2026/24580)
Aave V4 Raises Asset Caps Again as Demand Fills Capacity
**Aave V4 continues rapid growth trajectory** Multiple assets on Aave V4 have reached full capacity, prompting risk managers to raise supply, borrow, and credit line caps. @LlamaRisk proposed the increases to accommodate surging demand. **Key milestones:** - V4 crossed $20M in deposits - Multiple rounds of cap increases since launch - Security-first approach: caps start conservative and scale gradually - Runs on Chainlink oracle infrastructure securing tens of billions on V3 The protocol follows a deliberate growth strategy - deposit caps begin conservatively, then risk managers evaluate and propose increases as capacity fills. This measured approach balances user demand with protocol security during the maturation phase. Aave Pro interface available at [pro.aave.com](https://pro.aave.com)
Aave Pro Gets Enhanced Reserve Pages with Interest Rate Data and Supply Caps
Aave has rolled out UI and UX improvements to Aave Pro on both mobile and web platforms. The update introduces **new reserve pages** that display: - Per-asset interest rate data - Supply and borrow caps - Top addresses These enhancements build on Aave Pro, the interface for Aave V4 that allows users to earn, borrow, swap, and monitor positions.
Aave Pro Interface Launches for V4 Protocol
Aave has launched **Aave Pro**, a new interface for interacting with Aave V4 Protocol. **Key features include:** - Earning and borrowing capabilities - Token swapping functionality - Position monitoring tools The interface is now available at [pro.aave.com](https://pro.aave.com/) This follows the V4 testnet launch in November 2025, which included a developer preview of the Pro interface. The full announcement details are available on the [Aave blog](https://aave.com/blog/aave-v4-live-ethereum). Aave Pro provides users with a streamlined way to access V4's liquidity protocol features through a web-based interface.