Per Woofun AI, Aave has disclosed that its upcoming V4 architecture will restructure onchain lending through a modular Hub-and-Spoke framework designed to optimize liquidity, collateral, and risk management. This evolution marks a shift from the protocol's origins in ETHLend’s peer-to-peer model to a system capable of supporting crypto-native lending, real-world assets, and institutional credit.

Under this new design, Hubs aggregate liquidity while Spokes function as distinct borrowing markets with independent collateral and risk parameters. Spokes can access Hub liquidity through capped credit lines, allowing for risk isolation without sacrificing capital efficiency. The architecture supports various market structures, including paired asset markets, multi-asset singleton markets, and segregated markets, with the latter specifically tailored to bootstrap liquidity for real-world assets like equities and private credit while maintaining strict exposure controls.