Aave launches V4 on Ethereum with shared liquidity model for onchain lending

Aave Labs has deployed Aave V4 on the Ethereum mainnet, representing the protocol's most significant structural update since V1. The core innovation is the hub and spoke model, where a central liquidity hub shares capital with connected spoke markets, allowing diverse lending environments—from conservative institutional styles to strategy-focused setups—to operate off the same liquidity base without needing to bootstrap deposits individually. At launch, V4 features three liquidity hubs (Core, Prime, and Plus) and introduces Aave Pro, a new interface providing a unified view of rates and risk data. The rollout is cautious, starting with conservative supply and borrow caps that will be gradually increased based on governance approval following observed live usage. Aave believes V4 is crucial for scaling DeFi lending, which remains a small fraction of global financial assets, by simplifying the creation of specialized markets.

(Source：Crypto Briefing)