Aave V4 goes live on Avalanche with one liquidity hub, three spokes, planned RWA hub, and up to $15M incentives for market growth.
Aave V4 has gone live on Avalanche, marking its first deployment beyond Ethereum mainnet. Avalanche said the rollout opens the path for new on-chain credit markets.
The deployment brings Aave’s Hub and Spoke model to the Avalanche network. This design separates shared liquidity from lending markets with different risk rules.
Aave Labs said Avalanche already has strong DeFi demand and active Aave usage. The network has supported Aave V3 since 2022.
The Avalanche Foundation has committed up to $15 million in milestone-based incentives. The package is tied to hub launches and market growth targets.
Aave V4 Expands Beyond Ethereum
Avalanche said Aave V4 is now live on its network after its Ethereum mainnet launch.
This marks the next stage for Aave’s latest lending system. The move brings V4 infrastructure to a network with established DeFi activity.
BREAKING: Aave V4 is live on Avalanche@Aave’s first V4 deployment beyond Ethereum mainnet sets the stage for new credit markets on Avalanche, including those for tokenized assets.
V4 enables specialized lending hubs with tailored risk controls & deep shared liquidity. pic.twitter.com/FTJejYSg4h
— Avalanche🔺 (@avax) July 15, 2026
Aave V4 uses a Hub and Spoke model for lending markets. A hub holds shared liquidity across the system. Spokes then apply different rules for specific borrowing and collateral needs.
Aave Labs said Avalanche reduces execution risk because Aave V3 has operated there since 2022.
The network has handled liquidations, oracle activity, and market stress events. This operating record helped support the case for V4 deployment.
Liquidity Hub and Spokes Define Launch
The initial setup includes one Liquidity Hub and three Spokes on Avalanche. The Core Hub includes wAVAX, sAVAX, BTC.b, USDC, USDT, wETH.e, and EURC.
These assets form the first shared liquidity base. The Main Spoke supports the same assets as collateral and borrowable assets.
This gives users access to core crypto assets and stablecoins. It also keeps liquidity connected through the broader V4 design.
The AVAX Correlated Spoke supports sAVAX and WAVAX as collateral. WAVAX is the borrowable asset in that spoke. The Forex Spoke supports EURC, USDC, and USDT for borrowing and collateral.
Read Also:
RWA Hub and Governance Come Next
A dedicated RWA Hub is expected through a later proposal. RWA means real-world assets, such as tokenized funds or other traditional assets placed on-chain.
The planned hub would focus on institutional collateral. The RWA Hub will have its own asset list and risk settings. It will also include a separate oracle setup.
This structure is meant to keep institutional collateral away from the core liquidity pool. The proposal will gather community feedback and risk analysis from LlamaRisk.
After that, it may move to the ARFC Snapshot stage. A successful Snapshot could lead to an AIP vote for final confirmation.
Leave a Reply
You must be logged in to post a comment.