Aave V4 launches on the Ethereum mainnet, introducing the "Center-Radiation" architecture

BlockBeats message, March 30, Aave’s fourth-generation version Aave V4 of the decentralized lending protocol has been officially deployed to the Ethereum mainnet today.

Aave V4 uses a brand-new “hub-and-spoke” architecture, concentrating liquidity in the “hub” so that different financial markets can connect through the “spokes.” Each spoke can be independently configured with risk parameters and lending conditions, aiming to support a broader range of real-world credit markets, including structured loans, fixed-rate borrowing, and tokenized asset-backed credit, among others.

Stani Kulechov, CEO of Aave Labs, said the team will adopt a “controlled launch” strategy, with the initial rollout governed by DAO governance. At launch, major on-chain applications such as Lido, EtherFi, Kelp, Ethena, and Lombard plan to deploy spokes first.

On risk control, V4 introduces a “credit limit” mechanism, where the exposure cap for each use case is constrained by the credit limit. At the same time, the system supports more precise risk pricing at the collateral layer. It is claimed that V4 has undergone more than a year of security testing, and the core protocol has never suffered a hack during multichain deployments.

Kulechov said that V4’s focus will be on the “borrowing side,” using Aave’s on-chain liquidity to create substantial borrowing demand and channeling it back into the real economy.

This launch comes as the Aave DAO has gone through several months of governance turmoil. Recently, Kulechov proposed a reform proposal called “Aave Will Win,” aiming to transform Aave Labs into a subsidiary of the DAO in order to streamline the governance structure.