Aave V4 launches on Avalanche, expanding beyond Ethereum

The decentralized finance protocol Aave has launched its V4 lending platform on the Avalanche blockchain, marking the first deployment of its upgraded infrastructure beyond the Ethereum network. The move, which occurred on July 16, 2026, is a strategic expansion aimed at building specialized credit markets for tokenized real-world assets.

The launch utilizes Aave V4's new "Hub and Spoke" architecture. This design allows individual lending markets, or "spokes," to operate with their own custom collateral rules and risk management settings while remaining connected to a central "hub" of shared liquidity across the protocol. Aave founder Stani Kulechov stated that Avalanche was selected due to its established Aave user base and its rapidly growing activity in asset tokenization. He said Aave V4 was designed to enable new credit markets at internet scale.

One of the first planned markets on Avalanche will be a dedicated credit facility allowing institutions to borrow against tokenized collateral. According to the protocol, future markets are expected to support a range of tokenized assets, including U.S. Treasuries, money market funds, private credit, and corporate bonds. John Wu,...