Aave V4 Upgrade Liquidation System: Three Major Mechanism Innovations Behind $3.3 Billion Liquidation Data

2025-12-12 04:18:18

Abstract generation in progress

【Blockchain Rhythm】On December 12th, Aave announced a set of astonishing data on social media: since launch, nearly 300,000 liquidation operations have been completed, involving over $3.3 billion. These liquidations act as the protocol’s “immune system,” clearing potential bad debts in real-time and keeping the entire lending ecosystem healthy.

The upcoming V4 version has undergone a thorough overhaul of the liquidation mechanism. The three most obvious changes are:

First is the skyrocketing level of intelligence—the system automatically adjusts liquidation thresholds based on market fluctuations, and uses an auction mechanism to quickly handle collateral, essentially eliminating the need for manual monitoring, greatly improving capital turnover efficiency.

Second is enhanced security measures—integrating on-chain oracles for price verification, and deploying MEV protection schemes to effectively intercept price manipulation and sandwich attacks, significantly reducing slippage losses during liquidation.

Finally is user experience optimization—supporting partial batch liquidations, allowing borrowers to only top up a portion of the collateral to maintain their positions, avoiding full liquidation like before, which saves processing costs.

This new mechanism, in simple terms, makes liquidations faster, more stable, and more cost-effective.

AAVE-1.31%

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WalletDivorcer

· 12-15 04:02

$3.3 billion in bad debt written off, now that's real risk control V4's automation sounds great, but I'm worried it might just be the start of new bugs Is MEV protection reliable? Or are we just paying tuition again Batch liquidation is fine, but how to ensure we aren't caught in a sandwich attack Smart thresholds sound good, but can they withstand extreme market conditions?

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orphaned_block

· 12-14 01:17

3.3 billion dollars wiped out, huh? Feels like Aave's immune system is pretty tough. The V4 automatic threshold adjustment is great; I no longer have to stay up worrying about market fluctuations. MEV protection is actually the key; sandwich attacks are really disgusting. But on the other hand, could automated liquidations someday backfire and cause their own collapse? I haven't fully understood the logic behind batch liquidations. Can someone explain it to me?

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SelfStaking

· 12-13 21:49

The $3.3 billion liquidation has been settled. Aave's immunity system is really tough. V4 is coming with automation, humans can clock out now, haha.

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MetaNeighbor

· 12-12 04:47

$3.3 billion cleared so many times without a爆雷? Aave's immunity system is pretty impressive. --- V4 automation is so thorough, do liquidation bots still eat or not haha. --- I'm paying attention to MEV protection. I was once trapped by a sandwich attack, and I never want to go through that again. --- Automatically adjusting thresholds sounds good, but I'm worried it might just be on paper safety. --- Maximized liquidation efficiency is a good thing, but can user experience really be optimized? It still feels a bit sketchy. --- 300,000 liquidations, it seems the risk in the lending market is even greater than I thought.

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ZenChainWalker

· 12-12 04:45

A trading volume of 3.3 billion dollars sounds impressive, but what's really worth paying attention to is the V4 wave of automation upgrades. Finally, no more 24-hour monitoring needed. --- The MEV protection should have been implemented earlier; those sandwich attacks were truly disgusting. --- The batch liquidation feature is still somewhat helpful for small retail investors, preventing a single wave from causing immediate liquidation. --- The automatic adjustment of thresholds sounds good, but I wonder if it will introduce new bugs in actual operation. --- 33 billion from 300,000 liquidations, which means the average per liquidation isn't that large. --- Aave's immunity system is indeed stable; otherwise, it would have collapsed long ago due to bad debts. --- If V4 can really reduce slippage, that would be a solid positive development. --- Price verification by oracles—by the way, aren't the oracles themselves susceptible to manipulation? --- Maximizing capital turnover efficiency? Just listen for now; we’ll see how it performs in practice.

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LiquidityHunter

· 12-12 04:38

$3.3 billion in clearing volume... How is this slippage data calculated? We need to see how efficiently V4 actually performs in practice.

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MissedAirdropBro

· 12-12 04:36

The $3.3 billion liquidation data behind it shows that Aave is silently guarding the ecosystem. The V4 update indeed has some substance. The real immune system works like this: automation plus full protection is the future strategy. However, speaking of MEV protection, whether it can truly block traditional methods still depends on its actual performance after launch.

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SchrodingerWallet

· 12-12 04:21

$3.3 billion, huh? The immune system is really powerful, but I only believe that V4 can truly defend against MEV.

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