Aave has launched V4 on Avalanche, expanding V4 beyond Ethereum for the first time.
According to a recent Cointelegraph report, the launch also introduced Aave V4's "hub and spoke" structure to Avalanche. The structure is designed so specialised lending markets can apply their own collateral requirements and risk standards while also using shared liquidity across the protocol.
It means specialised markets on Avalanche could in future use tokenised assets such as U.S. Treasuries, money market funds, private credit and corporate bonds as collateral.
Aave is the largest decentralised lending protocol by total value locked. It holds about $14 billion in assets across 23 blockchains, according to DefiLlama data.
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