Aave
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Aave v4 Architecture
Aave v4 introduces a hub & spoke architecture that fundamentally restructures how liquidity and risk are managed compared to v3’s monolithic pool design. The hub acts as a central liquidity coordination layer while spokes are isolated borrowing modules with independent risk profiles. This design delivers contagion isolation, specialized risk per market, and improved capital efficiency…
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DeFi Borrowing & Lending
This article is derived from a chapter in the free eBook explaining DeFi technologies:DeFi Demystified | An Introduction To Decentralized Finance DeFi borrowing and lending differs from traditional finance where institutions will lend funds based on credit ratings. In DeFi accounts are anonymous, there are no credit ratings to assess risk. Borrowing and lending is…
