Aave V4 launches institutional lending markets for RLUSD and PYUSD

Aave has launched its first externally managed lending markets on the V4 protocol, operating on the Ethereum network. Through a partnership with Sentora, an institutional DeFi risk-management platform, the protocol now offers borrowing opportunities for Ripple’s RLUSD, PayPal’s PYUSD, and Origin’s OUSD.

Three specialized markets have been deployed via a Sentora Liquidity Hub. The RLUSD and OUSD yield markets allow users to borrow these stablecoins against collateral such as USDe, PRIME, mWIN, and PST. Additionally, a Bluechip market enables borrowers to secure loans in RLUSD, PYUSD, or OUSD using Bitcoin-pegged kBTC as collateral.

While Sentora manages critical risk parameters—including collateral requirements, interest-rate models, and liquidation settings—the Aave DAO retains contract ownership and control over security safeguards. This expansion follows a period of significant growth for the V4 infrastructure, which saw deposits surpass $1 billion in September.