Aave V4 Deposits Surge to $806 Million

The Ethereum Core market leads the expansion, accounting for $378 million of the total, while the EtherFi Cash market on Optimism contributes $257 million. Together, these two segments represent nearly 79% of all V4 deposits. This influx of capital has pushed active borrowing to $206 million, with the EtherFi market reaching a notable 92% utilization rate. High utilization can heighten returns for liquidity providers, though it simultaneously limits available capital for withdrawals and increases borrowing costs.

Individual asset allocation is anchored by weETH, which claims $97 million in deposits, followed by the USDG stablecoin at $90 million. While V4 is growing, it remains significantly smaller than the established Aave V3 system, which continues to hold approximately $31 billion. The V4 model, launched in April, distinguishes itself through a modular design where liquidity hubs manage accounting while spokes set specific collateral and risk parameters. Outside of Ethereum, the protocol’s deployment on Avalanche has secured $18 million, serving as a testbed for integrating tokenized real-world assets like U.S. Treasuries.