Aave Founder: Aave V4 Is Not Simply About Isolating Markets, Already Deployed Across Multiple Networks

Odaily reports that Aave founder Stani posted on X to clarify views regarding Aave V4, stating that the Hub and Spoke in V4 are isolated by default based on risk profiles, but markets with similar risk can share liquidity through the Hub and increase capital utilization and capital efficiency within set limits. Stani said that completely isolating liquidity could lead to capital fragmentation, reduced utilization, and higher user costs.

Stani also stated that V4 has attracted approximately $1.2 billion in deposits and is deployed across multiple networks including Ethereum, Avalanche, and Arc, while also supporting third-party curators such as EtherFi. The V4 codebase is significantly smaller than Aave V3, and Spoke can directly use the Hub's liquidity without needing to build up liquidity from scratch like traditional curated vaults.