Aave V4 deposits rose 30% weekly to a record high of $806 million

Aave V4 deposits exceed US$800 million, active loans reach US$206 million.

Aave V4 deposits climbed 30% to a record US$806 million in seven days, while active loans increased to US$206 million.

Summary

Aave V4 deposits jumped to more than US$800 million within six days of exceeding US$600 million. Among the six listed markets, Ethereum Core leads the way with US$378 million in deposits. As market utilization climbed to 92%, active EtherFi loans reached US$62 million. Aave V3 is still much larger, holding approximately $31 billion in deposits.

Aave V4 deposits accelerated to exceed US$800 million.

Chain data shows that V4 deposits reached US$806 million on August 27, continuing the rapid upward trend that began at the beginning of this month. Deposits exceeded $500 million on August 19, exceeded $600 million two days later, and then increased by more than $200 million in six days. Among total deposits, V4 deposits on Ethereum exceeded $500 million on August 25. Rather than putting all assets in the same general lending pool, the dashboard divides funds into multiple markets, each with separate collateral rules, lending limits and risk settings.

Ethereum Core is the largest market, holding $378 million, or approximately 47% of total V4 deposits. Closely followed by Optimism's EtherFi Cash, holding $257 million, and the two markets together hold $635 million, accounting for nearly 79% of deposits for this version. Among the remaining markets, Ethereum Global Dollar holds $75 million and Ethereum Prime holds $63 million. Avalanche Core attracted $18 million, while Ethereum Plus held $15 million. The six listed markets together accounted for $806 million in the dashboard report.

The latest data puts V4 deposits well above the US$400 million level reported in mid-August. Deposits were close to $350 million at the beginning of this month, meaning that the amount of money injected into the system has more than doubled in less than four weeks.

Active loans reached US$206 million

Lending increased with deposits, and V4 active loans reached US$206 million. Among them, EtherFi contributed US$62 million, and users deposited wrapped EtherFi pledged ether (weETH) as collateral and borrowed wrapped Ether. According to dashboard data, the utilization rate of the EtherFi market has reached 92%. Utilization measures the proportion of deposit assets currently being lent out and is crucial to both lenders and lenders. High utilization rates increase depositors 'returns, but they also drive up borrowing costs and reduce the liquidity available for immediate withdrawals.

A recent analysis of Aave's debt concentration found that among the largest leveraged positions in the agreement, Ethereum pledged and repledged tokens, including weETH, rsETH and wstETH, accounted for approximately 66.2% of the collateral. Of this, weETH accounted for approximately 42%, while WETH accounted for approximately 73% of the group's debt. The analysis also found that 9% of the positions carried approximately half of Aave's total debt. The average health factor for this group is close to 1.06, while the debt-to-equity ratio is about 10.7 times. According to Aave's rules, a health factor below 1 may trigger automatic clearing. These data cover the entire lending system of Aave, not just V4 new markets, and therefore should not be directly regarded as a measure of V4 risk. However, they provide context for the 92% utilization rate of the EtherFi market, where weETH collateral supports the borrowing of closely related WETH assets.

WeETH leads the Aave V4 deposit portfolio

WeETH is also the single asset with the largest supply in the V4, with deposits reaching US$97 million. The Global Dollar stablecoin (USDG) ranked second with $90 million, followed by WETH and USDC each with $81 million. Liquid-pledged and income-based assets account for several other big foreheads: LiquidETH holds US$77 million and liquidUSD holds US$58 million. Wrapped Bitcoin deposits have reached US$54 million, providing users with another crypto-asset that can be deployed under specific collateral settings in the V4 market. These seven named assets total US$538 million, accounting for approximately two-thirds of V4's total deposits, with the rest made up of other backing tokens.

The structure of the V4 divides its market into liquidity centers (Hubs) and dedicated spokes (Spokes). The center manages the capital supplied and bookkeeping, while the spokes set the terms of each lending market, including available collateral and the amount users can borrow. This design differs from Aave V3, where each market typically runs as a separate pool. V3 still holds approximately $31 billion in deposits, almost 38 times the amount of V4 deposits. The comparison shows that even though funds are migrating to the new version, most of Aave's capital remains in the old system.

When Aave V4 was launched, the agreement described the centre-spoke model as a way to create lending markets with customized risk controls without decentralizing liquidity. Supported application scenarios include fixed-rate loans, tokenized real-world asset mortgages, and structured credit. Aave's DAO has previously approved US$25 million in stablecoin funding and 75,000 AAVE tokens for protocol development. The funding framework establishes V4 as the long-term technical foundation of the system, while directing revenue from designated Aave Labs products to the DAO treasury.

Avalanche adds new U.S. Treasury borrowing channel

In addition to Ethereum and Optimism, Avalanche Core currently holds $18 million in V4 deposits. Aave launched V4 on Avalanche in July, making it the first network outside Ethereum to deploy V4. Aave said Avalanche's deployment would support a lending market backed by tokenized real-world assets, with planned collateral including tokenized U.S. Treasury bonds, money market funds, private credit and corporate bonds. The planned Treasury-backed markets establish a direct link to U.S. financial assets, but on-chain accessibility does not in itself determine whether the product can be legally available to U.S. investors. Any access rules will depend on the issuer, the structure of the tokenization tool, and the regulations applicable to its distribution.

The deployment of Avalanche has also been accompanied by measures to reduce support for low-activity markets. In July, an Aave governance proposal targeted six deployments and dozens of low-utilization reserves, involving approximately $98.1 million in supply assets and $15.6 million in debt. The proposal recommends withdrawing deployments on Sonic, Scroll, zkSync, Metis, Soneium and Aptos, while removing 50 low-adoption reserves and 21 expired Pendle principal tokens from other markets. Under the proposed process, Aave would first freeze affected reserves, reduce its supply and borrowing caps, and then gradually reduce remaining positions.