Aave has launched its V4 protocol on the platform after a binding onchain governance vote cleared its deployment. The protocol is designed to expand beyond traditional DeFi lending into more complex credit markets. The move follows months of governance disputes, with BGD Labs leaving in February and the Aave Chan Initiative expressing concerns about governance standards. V4 introduces a modular design that separates shared liquidity from market-specific risk, allowing different credit markets to operate with distinct parameters while drawing from a common liquidity pool. Alongside the launch, Aave introduced a new interface for advanced users to access V4's markets and announced an integration with Chainlink as the protocol's oracle provider.