The latest iteration of the decentralized lending platform has surpassed $30M in assets on the Avalanche network. Aave V4 is securing $1.2B in total deposits across Ethereum, Avalanche, and Arc, leveraging a hub-and-spoke architecture that lets isolated risk profiles access pooled liquidity. This design is intended to increase capital efficiency and prevent the fragmentation of capital common in traditional curated vaults.

The upgrade uses a smaller codebase than Aave V3 and integrates third-party curators including EtherFi. Founder Stani Kulechov stated that this model allow curators to manage an entire market structure and participate in the broader economics of the lending market, rather than only earning fees on assets under management.