Aave’s decentralized autonomous organization has approved a plan to deploy Aave V4 on Base and Arbitrum, marking a major expansion for the lending protocol across two of Ethereum’s busiest scaling networks. The proposal, known as AIP-367, reportedly passed with 89% support.

The upgrade is designed to introduce new risk settings and support a $120 million incentive program aimed at encouraging usage and liquidity on both chains. Supporters say the effort could help strengthen Aave’s market position and attract more total value locked over time.

Base and Arbitrum have become important venues for DeFi activity as users look for faster and cheaper transactions than those available on Ethereum’s main network. Aave’s decision to expand there signals continued competition among major protocols to capture liquidity and active borrowers.

The move also underscores how governance votes continue to shape the direction of leading crypto platforms. With approval secured, Aave can now move forward with the next phase of its V4 deployment strategy.