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Aave V4 is now live on Ethereum. Its creators hope that this next-generation, modular architecture will transform Aave into a bastion for emergent peer-to-peer lending use cases.
What's the Scoop?
- Redefined Market Structure: Aave V4 introduces a new architecture that concentrates liquidity into central "hubs" while allowing customizable "spokes" to power distinct lending markets with tailored risk profiles.
- More Collateral Options: By isolating insolvency risks within individual hubs (similar to the capability of competitive lending markets Euler and Morpho), Aave V4 is capable of supporting riskier collaterals without increasing solvency risk for lenders in other hubs.
- Lend Against Anything: In a video posted to X, Aave Labs CEO Stain Kulechov contrasted the differences between V4 and prior iterations. "The biggest difference between [Aave] V4 and Aave V3 is that the architecture is completely modular, which means that it's easy to extend into new use cases that will emerge in the future, for example lending against data," he said.
- Training Wheels On: Aave V4 will launch with guardrails in place, with new spoke markets initially gated by DAO governance. Stani alluded to permissionless possibilities in a comment to The Block, stating, "It's going to be DAO-governed, but in the future, there's an ability to actually create permissionlessness. The question is whether the model is safe."
Aave V4 is now live on @ethereum. pic.twitter.com/JMFVNeIZby
— Aave (@aave) March 30, 2026
