Aave V4 launches on Avalanche with new lending features

Aave V4 launches on Avalanche, introducing a Hub-and-Spoke architecture and enabling lending against tokenized real-world assets, marking its first expansion beyond Ethereum.

Aave V4 has officially launched on Avalanche, marking its first deployment beyond Ethereum. This rollout introduces the Hub-and-Spoke architecture, which features a Core Liquidity Hub and multiple specialized markets. This setup allows independent lending markets to share liquidity while maintaining separate risk frameworks. The initial supported assets include AVAX, sAVAX, BTC.b, WETH.e, USDC, USDT, and EURC. The deployment aims to expand on-chain lending and enable borrowing against tokenized real-world assets such as US Treasuries, money market funds, private credit, and corporate bonds. This move is part of Aave’s multichain expansion strategy, leveraging Avalanche’s infrastructure for digital finance and real-world asset tokenization. The new architecture supports a broader range of collateral types and is designed to facilitate specialized credit markets with tailored collateral and risk management.