Aave Labs has officially launched the fourth version of the Aave protocol (V4) on the Ethereum mainnet, introducing an innovative Hub and Spoke architecture to enhance the platform’s efficiency and scalability.
This is reported by Business • Media
Features of the Hub and Spoke Architecture
In the new version of Aave V4, the focus is on implementing a centralized liquidity pool (Liquidity Hub), to which individual markets — the so-called Spokes with unique parameters — connect. This approach allows users to provide liquidity through a Spoke, after which their assets flow into the Hub and become available to all connected markets. When a borrower takes out a loan, the funds come from this shared pool.
“When a user provides liquidity through a Spoke, their capital flows into the Hub and becomes available to all connected Spokes. When a borrower takes funds, they come from this shared Hub,” Aave explained.
Thanks to this architecture, launching new lending markets is significantly simplified — developers can access Aave liquidity from day one without needing to attract separate deposits.
Three Main Liquidity Hubs in Aave V4
At the time of the Aave V4 launch on the Ethereum network, three main Liquidity Hubs are operational:
- Core Hub — the main liquidity pool with the largest number of assets and connected markets;
- Prime Hub — aimed at users who require more controlled collateral parameters;
- Plus Hub — designed for strategies related to stablecoins and has specific restrictions.
All hubs and Spokes are interconnected through the free Aave Pro interface, which displays available assets, rates, risks, and allows flexible management of user positions.
Security, Audit, and Integrations
Particular attention was paid to security during the development of Aave V4. The protocol underwent auditing for nearly a year. Four leading auditing firms were involved, including Trail of Bits, Blackthorn, and ChainSecurity, as well as independent security researchers and over 900 participants in a public audit on the Sherlock platform. Additionally, Certora conducted formal verification, threat modeling, and architecture review.
The protocol is also integrated with DeFi Saver — a non-custodial service for managing positions in lending protocols. DeFi Saver users can open, expand, or close positions with a single click, set up automation (stop-loss, take-profit, margin management), and quickly switch between long and short positions or change collateral and debt. A lending feature for generating income, migration from V3 to V4 via Loan Shifter, and a unified interface for all markets and hubs are also available.
Future Development Plans for Aave V4
At the start of the platform’s operation, limited parameters were introduced to ensure safe scaling. In the future, the decentralized autonomous organization (DAO) plans to gradually increase limits for deposits and loans, add new Spokes, and expand the protocol to other networks. All key changes will occur through community voting.
Previously, the Aave team announced the launch of the Aave Shield protective mechanism following an incident involving the exchange of tokens worth over $50 million.