Aave CEO addresses criticism: Aave V4 is not merely isolated markets, has been deployed across multiple networks, and holds $1.2 billion in deposits.

Aave CEO Stani has published a post addressing multiple community queries regarding Aave V4. Stani explained that in Aave V4, Hub and Spoke components are isolated by default based on risk profiles, while liquidity can be shared across different markets via the Hub within pre-set limits to avoid excessive liquidity fragmentation. He noted that V4 Spokes represent lending and borrowing markets, while the Hub enables cross-market liquidity sharing, allowing markets with distinct risk characteristics to access a common liquidity pool, thereby boosting fund utilization and capital efficiency. Addressing claims that V4 is merely a collection of isolated markets and lags behind curated Vaults, Stani said traditional curated Vaults typically require capital or incentives to bootstrap liquidity from scratch, whereas V4 Spokes gain liquidity support from the Hub’s entire balance sheet right at launch. Additionally, Stani stated that V4’s overall architecture is more streamlined, with a significantly smaller codebase than Aave V3. To date, V4 has been deployed across multiple networks including Ethereum, Avalanche, and Arc, with total deposits reaching $1.2 billion. On the ecosystem participation front, Stani said V4 already supports third-party curators such as EtherFi, with more participants set to be added in the future. Unlike Vaults that only manage deposits, V4 allows curators to build and manage full market structures, while participating in the broader lending and borrowing economy’s revenue.