Araujo's arrival is Liverpool's latest signing this summer, but the Reds have now filled all 17 of the 25 available non-homegrown players in their squad.
With several young players reaching registration age this summer, Liverpool now has 14 homegrown players, while 31 first-team players need to be registered for the new season.
Given the current situation, if any new signings are added, Liverpool will need to remove eight first-team players from their Champions League squad and six fewer players from their Premier League squad.
This means that if Liverpool wants to continue making signings, selling players will almost certainly be a necessity.
Liverpool's signing of Araujo strengthens Iraola's defense and gives the manager another ideal partner for Virgil van Dijk.
The one-year loan includes a £47.1 million option to buy, and former Liverpool defender Glen Johnson called it a brilliant move.
He said, "The final outcome of the Ronald Araujo loan deal remains to be seen, but I think it's a very smart signing."
"Liverpool could have easily spent £50 million to £100 million to buy a new center-back, but they cleverly loaned an excellent player first..."
