Aave CEO Responds to Criticism: V4 Is Not Merely Isolated Markets and Has Been Deployed Across Multiple Networks, with Deposits Reaching $1.2 billion

September 23: Aave CEO Stani posted a response to multiple community questions regarding Aave V4. Stani stated that the Hub and Spoke in Aave V4 are isolated by default based on risk profiles, while the Hub can enable liquidity sharing between different markets within set limits to avoid excessive liquidity fragmentation.

Stani said that the Spoke in V4 represents lending markets, while the Hub can share liquidity across multiple markets, allowing markets with different risk characteristics to use a common liquidity pool, thereby improving capital utilization and capital efficiency.

In response to claims that "V4 is just isolated markets and lags behind curated Vaults," Stani stated that traditional curated Vaults typically need to bootstrap liquidity from scratch through capital or incentives, whereas V4's Spoke can obtain liquidity support from the entire Hub balance sheet from the moment it launches.

In addition, Stani said that the overall architecture of V4 is more concise, and the codebase size is significantly smaller than Aave V3. V4 has currently been deployed on multiple networks including Ethereum, Avalanche, and Arc, with deposits reaching $1.2 billion.

Regarding ecosystem participation, Stani stated that V4 already supports third-party curators such as EtherFi, and more participants will be introduced in the future. Unlike merely managing Vault deposits, V4 allows curators to build and manage complete market structures and participate in broader lending market economic returns.