Sentora has launched the first externally curated markets on Aave V4, one dedicated Liquidity Hub on Ethereum with three markets for borrowing the RLUSD, PYUSD and OUSD stablecoins, Aave Labs said on Thursday. Sentora picks the collateral, sets the risk parameters and runs the markets, which use the same V4 code as every other Aave market. Access is through Aave Pro.

The rundown

  • What changed: In Aave V4’s hub-and-spoke design, a Liquidity Hub holds deposits and each spoke is a market with its own collateral and risk rules. Sentora’s hub has three spokes. In RLUSD Yield, users borrow RLUSD against USDe, PRIME, mWIN or PST. OUSD Yield lends OUSD against the same four. Bluechip lends RLUSD, PYUSD or OUSD against kBTC. A PYUSD Yield market is planned, according to the governance proposal.
  • Why it matters: Until now, Aave markets were tuned under the DAO’s own risk framework. External curation lets a third party run a hub inside the protocol, much as curators already do on other DeFi lending platforms. For Aave, the pitch is new deposits that today sit elsewhere. The Aave DAO keeps ownership of the contracts and receives 50% of the hub’s revenue, the proposal says. The hub is walled off: no credit lines to or from the DAO’s own hubs.
  • Where it breaks: The proposal is blunt. Sentora’s assets, parameters, rate curves and oracles “have not been reviewed against the Aave Risk Framework,” and the DAO’s risk service providers have no mandate to monitor the hub or respond to incidents there. Risk-reducing changes take effect at once. Risk-increasing ones, such as higher collateral factors or caps, wait 48 hours on-chain, but there is no limit on their size, and the DAO cannot cancel a single scheduled change inside that window; its recourse is a governance vote to revoke Sentora’s roles. The collateral is mostly yield-bearing tokens, so a depeg or a frozen redemption in one of them hits the whole market. New assets and new hubs need a two-week optimistic governance process, in which a proposal passes unless the DAO objects.
  • By the numbers: Aave V4 held $685.9 million in total value locked (TVL) at about 14:00 UTC, against $16.93 billion on Aave V3, according to DefiLlama. DefiLlama tracks $2.49 billion under Sentora’s curation across venues. Aave Labs says Sentora has allocated more than $2 billion on-chain and runs more than 1,000 risk models per strategy. Neither figure is the size of the new hub. AAVE traded at $147.68 on CoinGecko, up 0.5% in 24 hours.

Sentora’s launch follows another V4 expansion: on 25 Sep, Coinbase’s tokenized stocks went live on Aave V4 on Base as collateral for borrowing USDC, according to Aave Labs (background: what tokenized stocks are).

Earlier this month CryptoWatchDesk covered Aave V4’s proposal to take native bitcoin as collateral via Babylon. New to borrowing on-chain? Start with what DeFi lending is.

Post by @aave on X: https://x.com/aave/status/2113369853906276557

This article is for information only and is not investment advice.