Aave has launched its first externally curated V4 markets on Ethereum, with Sentora taking charge of strategy and risk management. The new markets now support borrowing for three stablecoins: $RLUSD, $PYUSD, and $OUSD. Sentora oversees collateral rules, risk parameters, interest-rate curves, and oracle configurations, effectively managing the lending conditions while operating within Aave’s governance framework.
The V4 structure divides Aave into hubs and spokes. Hubs serve as the central liquidity and accounting layer, while spokes are specialized smart contracts that handle collateral, borrowing, and liquidation logic. This setup allows different markets to draw from a shared liquidity pool while applying distinct conditions. Governance controls the capacity allocated to each spoke, ensuring that borrowing and supply limits are enforced without requiring uniform collateral policies across all markets.
Sentora has also introduced an extended Risk Radar to monitor the V4 structure. The system provides separate views for hubs, spokes, and assets, with tools to compare capacity usage and track borrowing concentrations. A governance tracker records changes to assets and parameters, offering transparency into market operations. For example, a spoke that reaches its borrowing cap cannot access additional funds until capacity is freed through repayments or approved increases.
The launch introduces new considerations for DeFi users. Borrowers must evaluate the identity of the market, as different markets on the same protocol can offer varying assets, borrowing capacity, and liquidation conditions. Suppliers should compare income rates with market rules, assessing which borrowers can access liquidity and the potential risks if collateral values decline. While monitoring tools can highlight these differences, they cannot prevent losses from unsuitable collateral policies.