Aave founder clarifies V4 misconceptions, says markets isolate risk and share liquidity

Aave founder Stani Kulechov addressed several misconceptions about Aave V4 in a post on X. Responding to claims that V4 does not isolate risk by market, Kulechov said hubs and spokes are separated by risk level by default, while each spoke lending market can share liquidity through the hub within predefined limits. He also pushed back on criticism that the hub-and-spoke structure fragments liquidity, saying the design instead lets multiple markets share liquidity to improve capital efficiency. On claims that V4 is no different from curated vaults, Kulechov said new spokes can use liquidity from the hub without having to bootstrap separate liquidity from scratch. He added that V4 currently has $1.2 billion in deposits and has been deployed on Ethereum, Avalanche and Arc.