Some Understandings of Aave V4:

The core concept is the Liquidity Hub and its associated Spokes, with the central idea being the centralized management of assets to address the problem of capital fragmentation and improve liquidity utilization.

This action will occur in two phases:

(1) Currently, it is addressing the issue of liquidity fragmentation caused by establishing different markets within the same network. For example, on Ethereum, there are currently Core Market, Prime Market, and EtherFi Market. With the introduction of the Liquidity Hub, there will be no different markets within the same network, allowing for centralized liquidity management, and then using Spokes to customize lending parameters, thus eliminating friction from new market creation and the inefficiency of liquidity fragmentation.

(2) The ultimate version in the future is centralized management across networks, which means eliminating the fragmentation between chains and transforming into a unified market. However, this change must rely on a third-party cross-chain facility. Currently, Aave is primarily utilizing Chainlink CCIP, which will maximize efficiency and represent the complete form of traditional lending models, but it will also introduce a layer of cross-chain risk.

Spokes are the entry point for lending in Aave V4, connecting to the Liquidity Hub for customized lending functionalities. Independent rules and risk parameters can be set. Its main role is to maximize lending flexibility, somewhat akin to the Hooks in Uniswap.

Overall, the first step of the V4 upgrade focuses on enhancing the experience, while the qualitative change will come in the later phase of full-chain integration. This may also represent the final version of traditional lending models. For cross-chain solutions, Aave will likely continue to choose Chainlink CCIP, as Chainlink has gradually and invisibly penetrated the very foundations of DeFi.