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Aave V4 Tops $1B in Deposits as Arc and Base Go Live

Aave says V4 passed $1 billion in deposits in September as Arc and Base went live, adding new lending markets and a way to borrow USDC against tokenized shares.

Crypto Daybook Newsroom2 min read

Aave V4 passed $1 billion in deposits in September, with $310 million in active loans, as it went live on Arc and Base. The expansion adds new markets for the lending protocol and brings tokenized shares into a Base market as collateral, according to Aave Labs’ September development update.

What does the $1 billion milestone include?

The figure covers deposits across Aave V4, not just its new markets. Aave Labs reported the milestone in an update published October 1, but did not give a more precise date for when deposits crossed $1 billion. It also reported $310 million in active loans during September.

Aave V4 uses a “hub and spoke” design: a hub holds shared liquidity, while separate markets can set their own asset and risk rules. The new deployments show that design operating across more networks and different kinds of collateral.

What can users supply and borrow on Arc?

Arc went live with USDC, EURC, cirBTC and WETH available as reserves, Aave Labs said. Reserves are the assets users can supply to or borrow from a market. The update says LlamaRisk provided risk analysis and Chainlink supplied price feeds for the launch assets.

Aave says follow-up proposals will seek to activate cross-chain governance on Arc once the required infrastructure is ready. The update does not give a timeline for those proposals.

How does the Base market handle tokenized shares?

Base’s first V4 market is an Equities Hub, where seven Coinbase tokenized equities can be supplied as collateral and USDC is the only borrowable asset. The shares themselves cannot be borrowed in this market, according to Aave Labs.

A dedicated hub keeps the market’s liquidity and risk separate from other Aave markets on Base, according to Aave Labs’ Base deployment proposal. That separation lets users borrow USDC against tokenized shares without making those shares collateral across the rest of Aave’s Base markets.

The update says Aave’s Protocol Security Council carried out both activations as part of the hardening process for the new deployments. V4 also saw deposits on its Avalanche deployment rise from about $20 million to $30 million during September, while deposits of USDG, a stablecoin, approached $100 million.

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