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- Aave has launched the V4 public testnet, complete with the fully open-source V4 codebase and a developer preview of the upgraded Aave Pro interface.
- Even so, AAVE’s price action is still bearish; however, a break above $180 could open the way toward resistance at $190 and $198.
Aave Labs has officially launched the public testnet for Aave V4, along with a developer preview of Aave Pro, a new interface designed specifically for DeFi-native “power users.”
This launch is a key step in Aave’s roadmap toward the V4 mainnet upgrade, which brings architectural improvements that enhance capital efficiency, risk management, and modularity.
According to Aave’s announcement, Aave V4 introduces a shift from the previous design with its Hub and Spoke architecture. In this model, Liquidity Hubs serve as central pools of capital, aggregating assets and managing rate accrual, while Spokes function as modular markets connected to these hubs.
Each spoke can operate with its own risk parameters and collateral configurations, providing greater flexibility and efficiency across the protocol. The current lineup of spokes includes the Base Spoke, Treasury Spoke, and Vault Spoke.
Based on CNF’s reporting, this structure reduces fragmentation of liquidity, enabling more efficient capital utilization across markets. Aave V4 also introduces Risk Premiums, a pricing mechanism where borrowing costs are dynamically adjusted based on collateral risk. “Safer” collateral yields more favorable terms, while riskier assets carry higher premiums.
The testnet has launched in a Tenderly-based fork environment, with the codebase set to migrate soon to the Aave DAO organization. In the near future, the team will present a set of licensing frameworks for the DAO to review, vote on, and ultimately determine the official licensing approach.
In line with V4’s testnet launch, Aave Labs has made available Aave Pro, a redesigned interface built to expose the power of the new architecture. Advanced User Flows: The testnet version supports essential actions, supply, borrow, repay, withdraw, as well as collateral configuration and position visibility.
Unlike the existing Aave app, which targets broader or more casual users, Aave Pro is optimized for DeFi natives who want fine-grained control over their interactions. Users can view Hub and Spoke configurations (which assets each supports, risk parameters, etc.) through a unified wallet-level dashboard.
There are in-app tools to inspect risk configuration IDs, Risk Premium curves, and other risk-layer mechanics.
To support this growth, CNF reported that Aave has launched its app on the App Store, introducing the Aave App as an innovative savings solution that provides up to 9% APY on deposits.
Aave’s Market Action
Market sentiment for Aave recently received a notable boost following a whale inflow, as a single wallet acquired 16,991 AAVE, valued at roughly $3 million. This large purchase is interpreted as a sign of confidence in the altcoin at its current price levels and as a suggestion that institutional or high-net-worth participants see value in Aave.
Currently, AAVE is trading at $178, representing a sharp 73.6% decline from its all-time high of $666 recorded in 2021. Over the past 24 hours, the token has gained 2.22%, while over the past week, it experienced a 16% drop, placing it just above the critical $175 support level.
Technical indicators further reinforce the emerging bullish outlook. The Moving Average Convergence Divergence (MACD) line has moved above the signal line, suggesting that upward momentum is building and a potential breakout toward $182.41 could be on the horizon.
Aave derivatives also note increased activity, with trading volume climbing to $458.73 million, marking a 14.45% increase, while open interest sits at $242.39 million, reflecting a modest 1.54% uptick. Meanwhile, Aave’s total value locked (TVL) currently stands at $32 billion with a market capitalization of $2.7 billion.
