Discussing $AAVE 's V4 update

Aave V4's hub and spoke model means consolidating funds first, then calculating prices separately based on different risk levels. Liquidity is no longer managed individually by each, but centrally coordinated, which definitely improves capital efficiency. The core of this design boils down to two points: one is to boost capital efficiency, and the other is to manage risk more precisely. With improved efficiency, the return potential naturally looks better; by splitting risk, the system is less likely to be dragged down by any single part.

This structure provides defensive capabilities against players like $MORPHO , which focus on peer-to-peer matching. AAVE offers both deep, unified liquidity and differentiated pricing, preventing competitors from directly siphoning off high-quality users.

So, the same view remains: AAVE's fundamentals haven't changed and continue to improve. Although the short-term price performance isn't ideal, it's mainly due to negative news misjudging the situation. Patience will see the negative wave pass, leading to a strong rebound.