Stani Kulechov has designated the Avalanche network as the central node for institutional assets within the latest iteration of the Aave lending protocol. The founder of the protocol stated that Avalanche serves as the first network expansion for Aave V4, selected for its custom layer-1 architecture that facilitates onchain financial value for institutions. According to Kulechov, the V4 version is increasingly preferred by liquidity providers to avoid the capital fragmentation common in traditional isolated markets.

The V4 deployment has secured more than $1.3B in assets and crossed $400M in active loans after six months on mainnet and over 15 months of published code. Deployed across Ethereum, Avalanche, and Arc, the version utilizes a hub-and-spoke architecture to isolate risk profiles while allowing shared liquidity, with nearly 50% of its users being new to the Aave ecosystem. The Avalanche deployment alone has exceeded $30M in deposits and integrates third-party curators such as EtherFi.