Aave V4 Review 2026: Hub-and-Spoke Lending Explained

Aave V4 is the newest version of the Aave lending protocol. DefiLlama describes it as a modular lending protocol on Ethereum with a hub-and-spoke architecture, and lists it on Ethereum, Arc, Avalanche and Base. It has been tracked since 30 March 2026 and shows roughly $808M in TVL, up 5.8% over seven days.

The Aave website presents the wider brand as the world's largest onchain lending network, citing $29.7B in net deposits, 2.5M+ users and a 2017 founding. Those figures cover Aave overall, not V4 alone. Aave Pro is described as built on Aave v4 and offers earning, borrowing and swapping.

The homepage also lists integrations and users from partners such as Kraken, MetaMask and Whop. These are the project's own claims and we have not verified them. Aave Labs states it does not control or operate any version of the protocol.

Aave works as a pool-based lending market. Suppliers deposit tokens into smart contracts and earn interest. Borrowers lock collateral worth more than what they borrow, so loans stay overcollateralised. Parameters such as which assets are accepted are set through governance.

V4 is described by DefiLlama as modular, with a hub-and-spoke architecture. The homepage shows what that looks like in practice: separate markets for different needs. A general-purpose market accepts a wide range of collateral. A Bluechip market keeps deposited collateral from being lent out. An Ethena-correlated market lets users borrow USDe against related assets for looping.

If collateral value drops too far against the loan, the position can be liquidated to protect lenders. AAVE stakers can also provide a backstop through the Safety Module in a shortfall event, per Aave's FAQ.

Fee details for Aave V4 are not published in the material reviewed. Interest rates for suppliers and borrowers depend on each market and its utilisation, and you would see them in the live app for the market you choose.

The homepage shows a simulated 6.25% savings rate for the Aave App, which is illustrative rather than a guaranteed yield. Expect to pay network gas fees on whichever chain you use, and check any protocol or liquidation charges in the official documentation before borrowing.

Aave states its protocol contracts have been audited and formally verified by third parties, that the code is public, and that an ongoing bug bounty exists. DefiLlama lists 2 audits for V4. Changes must pass onchain governance. The website also cites a SOC 2 Type 2 annual security audit, which we could not independently confirm.

Risks remain: V4 is newly listed, so it has less live history than earlier versions, and isolated or strategy-specific markets concentrate exposure. Users hold their own keys, so mistakes with wallets or fake sites are not reversible. The site notes that no protocol can be considered risk free, and Aave Labs says it does not control or operate the protocol. Check local rules on DeFi use before depositing.

Aave V4 is for crypto holders who want to earn interest on stablecoins or other assets, or borrow against collateral without selling it. It also fits builders who want to add lending to an app. Complete beginners should start small and learn how liquidation works first.