Hub-and-Spoke Model, New Partners, and What Changes for Borrowers – Defi Bitcoin News

Ethereum DeFi Protocol Aave Releases V4 With Chainlink Oracles and Tokenized Collateral Markets

The release shared with Bitcoin.com News was announced at EthCC in Cannes and marks the protocol’s first major infrastructure overhaul in two years. Aave Labs says V4 was built to move the protocol beyond crypto-native lending into broader credit markets, including structured lending, tokenized asset-backed credit, and collateralized credit lines.

Previous versions required developers to choose between expanding into new markets and maintaining shared liquidity. That tradeoff pushed different risk profiles into the same pool or forced liquidity to split across separate deployments. V4’s hub-and-spoke model keeps capital centralized while allowing individual markets, called spokes, to operate with their own collateral rules and risk parameters.

Stani Kulechov, founder and CEO of Aave Labs, said the new architecture is designed to put DeFi’s existing liquidity to work on the demand side. “Aave V4 shifts the focus to the demand side, putting that liquidity to work across real credit markets — from crypto-native lending to tokenized assets, structured credit, and institution-specific borrowing models,” Kulechov remarked.

Aave currently holds billions in net deposits. The V4 architecture gives governance-controlled spoke markets access to that liquidity pool while keeping risk isolated by collateral type and borrowing environment.

At launch, dedicated spokes are live from Lido, EtherFi, Kelp, Ethena, and Lombard. Supported assets include USDT and XAUT from Tether, USDC and EURC from Circle, cbBTC from Coinbase, frxUSD from Frax, and USDG from Paxos. Chainlink serves as the exclusive oracle provider across V4 markets.

Chainlink co-founder Sergey Nazarov said the launch represents progress toward connecting onchain finance to global capital markets. Ethena CEO Guy Young credited Aave’s deep liquidity as a core part of Ethena’s growth and called V4 an important next step.

The protocol went through third-party audits, formal verification, invariant testing, and a six-week public security contest with hundreds of independent researchers before going live. The initial deployment uses conservative parameters and a limited scope to allow the system to harden under real market conditions before expanding.

V4 is a superset of V3, preserving all prior functionality while enabling a more modular design. The rollout gives Aave governance time to observe liquidity behavior before progressively widening credit lines and market types.

Alongside V4, Aave Labs released Aave Pro, a new web interface built for advanced users and the primary access point for V4 markets at launch. Multi-chain deployment is under consideration. Avalanche is among the chains being evaluated, given Aave’s operational history there and available liquidity. Any expansion would require Aave DAO governance approval.

Revenue from Aave-branded products flows to the Aave treasury, funding development and security. The model is designed to align incentives across users, developers, and the protocol as new markets are introduced.

Aave launched as ETHLend in 2017. With V4, the company positions itself as credit infrastructure for onchain financial markets rather than a standalone lending protocol. At press time, it is the largest DeFi protocol in terms of total value locked (TVL) size.

FAQ 🔎

• What is Aave V4? Aave V4 is an updated version of the Aave DeFi lending protocol that uses a hub-and-spoke architecture to support new market types like fixed-rate lending and tokenized real-world asset collateral.
• When did Aave V4 launch? Aave V4 launched on Ethereum mainnet on March 30, 2026, announced at EthCC in Cannes, France.
• What assets are supported on Aave V4 at launch? V4 supports USDT, USDC, EURC, XAUt, cbBTC, frxUSD, USDG, and assets from Lido, EtherFi, Kelp, Ethena, and Lombard at initial deployment.
• Is Aave V4 available on networks besides Ethereum? Aave V4 launched on Ethereum mainnet only, with multi-chain expansion including Avalanche under consideration pending Aave DAO governance approval.