Aave officially stated on the X platform that since its inception, Aave has processed nearly 295,000 liquidations, totaling over $3.3 billion. These liquidation protection protocols protect against bad debts, maintaining system health. In light of this, Aave V4 introduces a redesigned and optimized liquidation mechanism based on the V3 liquidation mechanism. Its main advantages include: 1. Introducing dynamic liquidation thresholds and automated auction mechanisms to reduce manual intervention and improve liquidation speed and capital efficiency; 2. Reducing slippage and manipulation risks during the liquidation process through the integration of on-chain oracles and MEV (Miner Extractable Value) protection; 3. Supporting partial liquidation and batch processing, allowing borrowers to avoid full liquidation at a lower cost.