Aave V4 Launches on Circle's Arc Blockchain with Initial Support for Top Stablecoins

Aave V4 is now live on Circle's newly launched Arc blockchain. Aave Labs confirmed that the deployment has been activated and is fully operational, supporting USDC, EURC, cirBTC, and WETH from launch.

The initial market configuration uses one Core Liquidity Hub, drawing liquidity from a shared pool for different borrowing and collateral use cases. The general Main Spoke and Forex Spoke are built around stablecoin borrowing, with exact collateral treatment differing between markets.

Aave's governance proposal described plans for conservative caps during the early stage of the market, reflecting the fact that liquidity on a new blockchain can take time to develop. The deployment went live after the Protocol Security Council lifted a temporary deployment halt, allowing users to access the market through Aave's interface.