Aave Labs has officially launched the fourth version of its protocol — Aave V4 — on the Ethereum mainnet, providing users with access to an updated decentralized lending platform featuring a new Hub and Spoke architectural model.
This is reported by Finway
Hub and Spoke Architecture: New Opportunities for Liquidity
The key innovation of Aave V4 is the implementation of a centralized liquidity pool (Liquidity Hub), which connects individual markets (Spokes) with their own configurations. This allows for more efficient distribution of liquidity across different markets and makes the system more flexible for users and developers.
“When a user provides liquidity through a Spoke, their capital flows into the Hub and becomes available to all connected Spokes. When a borrower takes funds, they come from this shared Hub,” explained Aave.
Developers emphasize that thanks to the new architecture, creating new lending markets has become easier: developers can launch markets with access to liquidity from day one without requiring separate deposits. The launch of Aave V4 occurred with limited parameters for safe functionality expansion.
Three Liquidity Hubs and Integration with DeFi Saver
At the launch of Aave V4 on the Ethereum network, three main Liquidity Hubs are operational:
- Core Hub — the main pool with the largest number of assets and connected markets;
- Prime Hub — aimed at those who need a controlled collateral structure;
- Plus Hub — designed for stablecoin strategies and has specific restrictions.
For user convenience, the Aave team has introduced a free interface called Aave Pro, which combines all Hubs and Spokes in one place. The interface displays available assets, rates, risk metrics, and allows users to manage their positions.
Additionally, Aave V4 is already integrated with DeFi Saver — a non-custodial service for managing positions in lending protocols. Through it, users can open, increase, or close positions in a single transaction, set up automation (stop-loss, take-profit, leverage management), quickly switch between long and short positions, and migrate from V3 to V4 via Loan Shifter.
Security, Audit, and Future Plans
Developers have placed special emphasis on the security of the new protocol. Aave V4 underwent a comprehensive audit for nearly a year, involving four leading auditing firms, including Trail of Bits, Blackthorn, and ChainSecurity, as well as independent researchers and over 900 participants in a public audit on the Sherlock platform. Certora assisted with formal verification, threat modeling, and architectural review.
At launch, conservative limits have been set to ensure user safety. In the future, the decentralized autonomous organization managing the project plans to gradually increase deposit and loan limits, add new Spokes, and expand the protocol to other networks. All such changes will be approved through community voting.
Previously, Aave announced the implementation of the Aave Shield protective mechanism following an incident involving a token exchange worth over $50 million.