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This article explains how AAVE V4 introduces a Risk Premium to adjust borrowing costs based on the risk associated with collateral assets. It breaks down the mechanics of how this model differs from previous versions, emphasizing fairer interest rates for users depending on their collateral quality.
Stani Kulechov outlines Aave's plans to expand its DeFi protocol through Aave V4, the Aave App, and a focus on onboarding millions of users. He emphasizes the importance of building a foundational credit layer for the onchain economy, highlighting Aave's significant growth and future potential.