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Aave launches V4 on Avalanche to expand lending beyond Ethereum

The first planned Avalanche market will let users borrow against tokenized assets, with support for specialized collateral and risk settings.

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Cointelegraph reports that decentralized lending protocol Aave has launched its V4 infrastructure on Avalanche, marking its first expansion beyond Ethereum and aiming to support future lending markets tied to tokenized real-world assets.

The deployment introduces Aave V4’s Hub and Spoke architecture, which lets specialized lending markets set their own collateral requirements and risk parameters while sharing liquidity across the protocol, and Aave says it is designed to support a broader range of collateral than prior versions.

According to Aave, one of the first planned markets on Avalanche will allow borrowing against tokenized assets, and future specialized markets could cover tokenized instruments including US Treasurys, money market fund shares, private credit, and corporate bonds with customized rules.

Cointelegraph adds that Aave is the largest decentralized lending protocol by total value locked, with nearly $14 billion in assets across 23 blockchains, citing DeFiLlama data, and notes related moves by firms including Franklin Templeton and Nasdaq to build workflows for tokenized collateral.

Latest closeEthereum $1,923.25 ▲1.8%|Nasdaq Comp. 26,107.01 ▲0.9%

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