Aave V4 Deposits Top $1.5 Billion in October, Setting New Record

Key Facts

Deposits in the fourth version of the Aave protocol topped $1.5 billion in October, setting a new record, according to an Aave Labs update published on the governance forum on November 2. The company said active loans in the same version topped $450 million during the month. The update puts growth in deposits and borrowing together at the forefront of V4’s expansion metrics, following its launch on the Ethereum mainnet on March 30, 2026. The figures show increasing activity in the new version, while the update does not specify the monthly increase or the pace of loan growth. It also provides no direct comparison between V4 deposits and total liquidity in the third version.

The March 30 launch of V4 marked the start of a gradual expansion; the version launched with three liquidity hubs and 11 associated modules, according to Aave’s official changelog. Aave Labs said deposits approached $10 million in the first week, then topped $20 million by April 13. These milestones put October’s growth, when deposits exceeded $1.5 billion, in the context of cumulative gains since launch. The version’s design relies on a hub that holds assets, with connected modules defining collateral types, risk parameters and liquidation rules for each market. At launch, the company said deposit and borrowing caps began at conservative levels and that the DAO would raise them while monitoring the protocol’s behavior.

One sign of activity expanding beyond deposit and loan figures was the addition of the first V4 markets managed by an external party, led by Sentora, according to the October update. Aave DAO retains ownership of the contracts and receives 50% of revenue from these markets, Aave Labs said. The three live markets allow borrowing of RLUSD, PYUSD and OUSD against yield-bearing collateral and major assets. The arrangement adds operators and new markets to the V4 ecosystem, while contract ownership and the revenue share remain with the DAO, according to the update. The source gave no figures for Sentora’s revenue or borrowing volumes in each market individually.

The expansion included the listing of syrupUSDC in V4 on the Arc network, with USDC available as a borrowable asset. Aave Labs said this was the first reserve to implement the Risk Premium feature, which adjusts borrowing costs according to collateral quality. USDe was also listed in V4 Core on the Avalanche network, expanding the yield-bearing assets available there. On the Base network, the tokenized-stock-backed lending market topped $9 million in deposits, while loans approached $4 million, according to the company’s update. These additions show an expansion in the types of assets, collateral and networks served by V4 markets, alongside the increased usage reflected in October’s figures.

At the protocol-wide level, cumulative borrowing reached $1.1 trillion through October, according to an Aave Labs update. This figure represents Aave’s cumulative activity, while the $1.5 billion in deposits and more than $450 million in active loans refer to the fourth version during October. When V4 launched in March, Aave Labs said the protocol had processed more than $1 trillion in cumulative loans and held a share of more than 50% of the decentralized lending market. The company also said V4’s security review program covered about 345 cumulative days and was backed by a $1.5 million security budget approved by the DAO. At the time, the company described conservative deposit and borrowing caps as an intentional part of its approach to expansion while monitoring the protocol’s performance.

Protocol activity grew as AAVE/USD closes declined in the days leading up to November 13. EL7 data showed a close of $130.87 on November 6, followed by $120.70 on November 11 and $114.07 on November 12. V4’s October deposit growth therefore did not coincide with a sustained rise in the token’s price during those later sessions. For the following month, Aave Labs said its priorities include continuing support for the Babylon integration toward launch and advancing V3.8 through audits and governance. The priorities also include adding assets to V3 and V4 and supporting the Tempo network’s evaluation of a V4 deployment.