{"id":70403,"date":"2026-03-30T13:55:11","date_gmt":"2026-03-30T13:55:11","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/hub-and-spoke-model-new-partners-and-what-changes-for-borrowers-defi-bitcoin-news\/"},"modified":"2026-03-30T13:55:11","modified_gmt":"2026-03-30T13:55:11","slug":"hub-and-spoke-model-new-partners-and-what-changes-for-borrowers-defi-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/hub-and-spoke-model-new-partners-and-what-changes-for-borrowers-defi-bitcoin-news\/","title":{"rendered":"Hub-and-Spoke Model, New Partners, and What Changes for Borrowers \u2013 Defi Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Ethereum DeFi<\/span> Protocol Aave Releases V4 With Chainlink Oracles<\/span> and Tokenized Collateral Markets<\/h2>\n

The release shared with Bitcoin.com News<\/a> was announced at EthCC in Cannes and marks the protocol\u2019s first major infrastructure overhaul in two years. Aave<\/a> Labs says V4 was built to move the protocol beyond crypto-native lending into broader credit markets, including structured lending, tokenized asset-backed credit, and collateralized credit lines.<\/p>\n

Previous versions required developers to choose between expanding into new markets and maintaining shared liquidity<\/span>. That tradeoff pushed different risk profiles into the same pool or forced liquidity<\/span> to split across separate deployments. V4\u2019s hub-and-spoke model keeps capital centralized while allowing individual markets, called spokes, to operate with their own collateral rules and risk parameters.<\/p>\n

Stani Kulechov, founder and CEO of Aave Labs<\/a>, said the new architecture is designed to put DeFi<\/span>\u2019s existing liquidity<\/span> to work on the demand side. \u201cAave V4 shifts the focus to the demand side, putting that liquidity<\/span> to work across real credit markets \u2014 from crypto-native lending to tokenized assets, structured credit, and institution-specific borrowing models,\u201d Kulechov remarked.<\/p>\n

Aave currently holds billions<\/a> in net deposits. The V4 architecture gives governance-controlled spoke markets access to that liquidity pool<\/span> while keeping risk isolated by collateral type and borrowing environment.<\/p>\n

At launch, dedicated spokes are live from Lido, EtherFi, Kelp, Ethena, and Lombard. Supported assets include USDT<\/span> and XAUT from Tether, USDC and EURC from Circle, cbBTC from Coinbase<\/a>, frxUSD from Frax, and USDG from Paxos. Chainlink serves as the exclusive oracle<\/span> provider across V4 markets.<\/p>\n

Chainlink<\/a> co-founder Sergey Nazarov said the launch represents progress toward connecting onchain finance to global capital markets. Ethena<\/a> CEO Guy Young credited Aave\u2019s deep liquidity<\/span> as a core part of Ethena\u2019s growth and called V4 an important next step.<\/p>\n

The protocol went through third-party audits, formal verification, invariant testing, and a six-week public security contest with hundreds of independent researchers before going live. The initial deployment uses conservative parameters and a limited scope to allow the system to harden under real market conditions before expanding.<\/p>\n

V4 is a superset of V3, preserving all prior functionality while enabling a more modular design. The rollout gives Aave governance time to observe liquidity<\/span> behavior before progressively widening credit lines and market types.<\/p>\n

Alongside V4, Aave Labs released Aave Pro, a new web interface built for advanced users and the primary access point for V4 markets at launch. Multi-chain deployment is under consideration. Avalanche is among the chains being evaluated, given Aave\u2019s operational history there and available liquidity<\/span>. Any expansion would require Aave DAO<\/span> governance approval.<\/p>\n

Revenue from Aave-branded products flows to the Aave treasury, funding development and security. The model is designed to align incentives across users, developers, and the protocol as new markets are introduced.<\/p>\n

Aave launched as ETHLend in 2017. With V4, the company positions itself as credit infrastructure for onchain financial markets rather than a standalone lending protocol. At press time, it is the largest DeFi<\/a> protocol in terms of total value locked (TVL) size.<\/p>\n

FAQ \ud83d\udd0e<\/h2>\n