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Aave will update the clearing engine in V4, introducing optimization measures such as dynamic clearing thresholds and automated auction mechanisms

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2025-12-12 04:07:12
Aave officials said in a post on the X platform that since its establishment, Aave has handled nearly 295,000 liquidations, amounting to more than $3.30 billion. These clearing protocols protect against bad debts and keep the system healthy. In view of this, based on the V3 clearing mechanism, AaveV4 introduces a redesigned and optimized clearing mechanism. Its main advantages include:
1. Introduce dynamic clearing thresholds and automated auction mechanisms to reduce manual intervention and improve clearing speed and capital efficiency.
2. Reduce the risk of slippage and manipulation in the liquidation process by integrating on-chain oracles and MEV (miner extractable value) protection.
3. Support partial liquidation and batch processing, allowing borrowers to avoid full liquidation at a lower cost.
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