Aave is set to launch its V4 iteration in the fourth quarter, introducing a 'hub-and-spoke' architecture aimed at consolidating liquidity across its $45 billion total value locked (TVL) ecosystem. This new modular design will allow for customizable risk parameters and shared pools, enhancing the platform's ability to support diversified lending markets such as PENDLE, UNI, and sUSDe. The 'hub-and-spoke' model is intended to position Aave as the 'operating system' of decentralized finance (DeFi), fostering innovation while reducing competition within the ecosystem. By enabling more efficient liquidity management and risk customization, Aave V4 aims to attract a broader range of users and projects, further solidifying its role in the DeFi landscape.