Aave V4 launches Ethereum lending markets with Sentora risk management

Aave V4 has introduced three new lending markets on the Ethereum network, utilizing external curator Sentora to establish market-level risk parameters. These markets allow for borrowing in several stablecoins, including Ripple USD (RLUSD), PayPal USD (PYUSD), and Origin Dollar (OUSD).

The new markets include two yield-bearing options that accept collateral such as Ethena’s USDe, PRIME, Midas mWIN, and Huma’s PayFi Strategy Token (PST). Additionally, a Bluechip market has been established that accepts Kraken Wrapped Bitcoin (kBTC) as collateral for borrowing RLUSD, PYUSD, or OUSD.

While Sentora manages the risk parameters, the Aave Decentralized Autonomous Organization (DAO) maintains ownership of the contracts and administrative controls, including the ability to revoke Sentora’s roles. A governance proposal suggests a 48-hour delay for any changes that increase risk. The markets operate via a dedicated Ethereum Hub designed to be isolated from other Aave markets, with revenue from the instances proposed to be split equally between the DAO and Sentora.