Aave V4 launches on Ethereum mainnet with ‘hub-and-spoke’ architecture

Aave V4 has officially launched on the Ethereum mainnet after over two years of development, introducing a new “Hub and Spoke” architecture designed for greater flexibility in creating lending markets. This architecture features liquidity hubs that financial markets can access, with spokes maintaining distinct risk parameters and governance features. The platform aims to support a wider range of real-world credit markets, including tokenized assets and structured lending, as institutional interest in onchain finance grows. The launch is controlled, with three initial liquidity hubs categorized by risk profile (Prime, Core, and Plus). Security was a primary focus, with over a year of testing, and the launch comes amidst ongoing governance changes within the Aave DAO, with proposals to streamline governance and increase execution speed. Aave V4 also integrates the GHO stablecoin and introduces a Reinvestment Module to optimize liquidity usage.

(Source：The Block)