Aave V4 deposits reach record $806 million following 30% weekly surge

Aave V4 deposits have reached a record high of approximately $806 million, following a 30% increase over a seven-day period. This growth represents a significant surge from the $350 million level recorded at the start of August.

The V4 protocol utilizes a ‘hub and spoke’ architecture, where a central liquidity hub manages assets while individual spokes apply specific collateral types, borrowing limits, and risk parameters. This structure allows different lending markets to share common liquidity while isolating specific risks.

Key markets within the V4 ecosystem include Ethereum Core, which holds roughly $378 million, and EtherFi Cash on the Optimism network, which accounts for approximately $257 million. Together, these two markets represent nearly 79% of all V4 deposits. Active loans within the protocol have also risen, reaching between $206 million and $215 million depending on the data source.

Despite the rapid growth of V4, Aave V3 remains the dominant version of the protocol, holding significantly higher total value locked (TVL) in the range of $17.5 billion to $31 billion.