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

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.