Aave V4 deposits have reached a record $806 million after climbing 30% over seven days, while active loans have increased to $206 million.
Aave V4 Deposits Accelerate Past $800 Million
Aave's on-chain dashboard shows that V4 deposits reached $806 million on Aug. 27, extending a rapid rise that began earlier in the month. Deposits passed $500 million on Aug. 19 and exceeded $600 million two days later before adding more than $200 million over the following six days. Within the total, V4 deposits on Ethereum passed $500 million on Aug. 25. The dashboard divides the capital among several markets with separate collateral rules, borrowing limits, and risk settings instead of placing every asset inside one common lending pool.
Ethereum Core is the largest market, holding $378 million, or about 47% of all V4 deposits. EtherFi Cash on Optimism follows with $257 million, giving the two markets a combined $635 million and nearly 79% of the version's deposits. This rapid growth in DeFi deposits comes amid broader ecosystem activity, including the Term Finance Meta Vaults attack that drained $8.5M earlier this week.
Active Loans Reach $206 Million
Borrowing has risen alongside deposits, with active V4 loans reaching $206 million. EtherFi accounts for $62 million of the total as users deposit wrapped EtherFi staked Ether, known as weETH, as collateral to borrow wrapped Ether. The EtherFi market has reached a utilization rate of 92%. High utilization can increase returns for suppliers, but it can also raise borrowing costs and leave less immediately available liquidity for withdrawals. Ether staking and restaking tokens, including weETH, rsETH and wstETH, made up about 66.2% of collateral among Aave's largest leveraged positions.
WeETH is the largest individual asset supplied to V4, with deposits of $97 million. The Global Dollar stablecoin, USDG, ranks second at $90 million, followed by WETH and USDC at $81 million each. The seven named assets together represent $538 million, or about two-thirds of all V4 deposits. This lending growth parallels the broader RWA and DeFi expansion, including Mantle's RWA yield offering expansion from CeFi to DeFi.
V4's Hub-and-Spoke Model Differs From V3
V4's structure separates its markets into liquidity hubs and specialized spokes. Hubs manage supplied capital and accounting, while spokes set the terms for individual borrowing markets, including which collateral can be used and how much users can borrow. The design differs from Aave V3, where each market generally operates as its own pool. V3 still holds approximately $31 billion in deposits, nearly 38 times the amount recorded in V4. The comparison shows that most Aave capital remains in the older system even as deposits move into the new version.
Outside Ethereum and Optimism, Avalanche Core accounts for $18 million of current V4 deposits. Aave launched V4 on Avalanche in July, making the network its first V4 deployment beyond Ethereum. The Avalanche rollout supports lending markets backed by tokenized real-world assets, including tokenized U.S. Treasuries, money market funds, private credit and corporate bonds.
