Aave V4 introduces a new market architecture featuring collateral isolation across Hubs and Spokes, with Prime, Core, and Plus Hubs launching initially.
Aave V4 is gaining momentum during its capped launch phase with a redesigned market structure, according to an announcement from Stani Kulechov. The protocol introduces a two-layer isolation model that segments collateral across separate Hubs, which are further divided into Spokes, with liquidity sharing selectively capped within each Hub across its Spokes.
The initial market structure is organized around three Hubs: Prime, Core, and Plus, with additional Hubs expected to launch in subsequent phases. This architecture represents a shift from Aave’s previous market design, implementing greater granularity in how collateral isolation and liquidity provisioning are managed across the protocol.
The capped launch phase allows Aave to roll out V4 incrementally while monitoring performance and risk parameters across the new market structure before full deployment.
Sources: Stani Kulechov on X
This article was produced with the help of AI flows.