AAVE V4 INTRODUCES "RISK PREMIUMS"

Summary from the TLDR Crypto newsletter

Aave V4 will replace the current one-size-fits-all borrowing rates with "Risk Premiums," reflecting the true risk of users' collateral and providing more accurate and fair lending terms. High-quality collateral like ETH will have lower borrowing costs, while riskier assets will incur higher premiums, improving market efficiency, incentivizing stronger collateral, and enabling customized risk management across specialized markets.