Aave V4 has attracted approximately $1.2 billion in deposits across Ethereum, Avalanche and Arc, fo under Stani Kulechov said on Sept. 23. The milestone highlights rapid growth for the decentralized lending protocol since V4 launched on Ethereum earlier this year.
Kulechov also addressed questions about how V4 manages liquidity across different markets. The latest version uses a Hub and Spoke architecture designed to connect liquidity while keeping risk controls specific to individual markets.
V4 Growth Spans Three Networks
Aave launched V4 on Ethereum in March after more than two years of development. The protocol later expanded V4 to Avalanche in July, marking its first deployment outside Ethereum. Arc subsequently became another V4 network, extending Aave’s reach toward institutional-oriented blockchain activity.
Aave’s governance data showed deposits climbing sharply during September. Deposits across V4 hubs reached about $709 million by Sept. 16, meaning the latest $1.2 billion figure represents substantial growth in less than two weeks.
The expansion also includes third-party curators such as EtherFi, according to Kulechov. These integrations allow additional markets to tap into V4 infrastructure without independently building large liquidity pools.
Hub-and-Spoke Model Targets Capital Efficiency
Under V4’s design, a Liquidity Hub holds shared assets while Spokes connect individual lending markets with their own collateral, risk parameters and liquidation rules.
Markets remain isolated by default according to their risk conditions. However, markets with similar risk profiles can share liquidity through the Hub. Kulechov said this approach can reduce liquidity fragmentation and improve capital utilization.
The architecture represents a shift from fully isolated lending markets. Instead of requiring every new market to accumulate its own liquidity, V4 allows eligible Spokes to access liquidity already available through a Hub.
Aave’s broader strategy also increasingly targets tokenized real-world assets and institutional credit. The growing V4 deposit base gives the protocol a larger liquidity foundation as it expands into those markets.
