Aave has launched its V4 upgrade, introducing a modular liquidity infrastructure designed to enhance efficiency and minimize fragmentation. The upgrade implements a unified Hub and Spoke model, allowing liquidity to be shared across various strategies while maintaining isolated risk. Key features of the upgrade include an ERC-4626-style share model for improved accounting and a dynamic liquidation mechanism that adjusts based on health factors. These enhancements aim to optimize the risk-to-reward ratio for users and provide clearer support and resistance levels in asset management.