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.
