Aave V4 Goes Live on Ethereum Mainnet Introducing a "Center-Radius" Architecture

BlockBeats News, March 30th, the fourth-generation version of the decentralized lending protocol Aave, Aave V4, has been officially deployed on the Ethereum mainnet today.

Aave V4 adopts a new "hub-and-spoke" architecture, concentrating liquidity at the "hub" for various financial markets to plug into through "spokes." Each spoke can independently configure risk parameters and lending environments, aiming to support a broader range of real-world credit markets, including structured loans, fixed-rate lending, and asset tokenization-supported credit.

Aave Labs CEO Stani Kulechov stated that the team will follow a "controlled launch" approach, initially governed by the DAO. At launch, major on-chain applications such as Lido, EtherFi, Kelp, Ethena, and Lombard plan to deploy spokes first.

In terms of risk control, V4 introduces a "credit limit" mechanism where the exposure limit for each use case is constrained by a credit limit. Additionally, the system supports more precise collateral-level risk pricing. It is claimed that V4 has undergone over a year of security testing, and the core protocol has never suffered a hack in its multi-chain deployment.

Kulechov stated that V4 will focus on the "borrowing side," leveraging Aave's on-chain liquidity to generate significant borrowing demand and channel it back to the real economy.

This launch comes as Aave DAO has experienced several months of governance turmoil. Kulechov recently proposed the "Aave Will Win" reform proposal aimed at transforming Aave Labs into a subsidiary of the DAO to streamline the governance structure.