Aave Labs has announced the upcoming launch of Aave V4 in mid-2025 as part of the broader Aave 2030 initiative. This upgrade aims to significantly enhance the lending platform's features and establish higher standards in the DeFi industry.

Some enhancements include improved support for GHO and reduced transaction fees. These changes, along with others, are unlikely to be reversed unless major technical issues arise. Additionally, Aave V4 will automate the calculation of interest rates for borrowing proposals, integrating it into the DAO governance process.

Aave Labs sees this as a major advancement in DeFi, focusing on risk management, capital efficiency, and scalability. Despite being in the future, the effects are already evident, with the AAVE token experiencing fluctuations in value.

However, the majority of recent trades have been profitable, with AAVE aiming to reach $100 by year-end. The roadmap for Aave V4 hints at further improvements to the lending protocol, driven by community feedback and market conditions. Aave Labs is expected to make more announcements to steer the development of V4 in the future.