Aave has deployed the V4 loan agreement for the first time to the public chain outside the Taifung, the Avalanche network. This time, the focus was not on retail lending, but on the institutional credit market, which revolved around the real assets of monetization. After the news was released, AAVE prices remained weak with the overall encrypted market and did not increase as the product went online.

The first V4 deployment outside the Ether.

Aave said that Avalanche was the first V4 deployment network outside the Ether. The new version introduces the Hub and Spoke architecture, which allows different lending markets to set collateral coverage and risk parameters according to their needs, while continuing to connect to shared liquidity pools.

The goal of this design is to allow the lending market for a particular asset type to operate on its own without having to cut off liquidity completely into a separate pool. For the institutional landscape, this means that the agreement can create a more subdivided market structure for different assets.

RWA Lending has become a new focus

Aave plans to boost the multi-currency asset-supported lending market on Avalanche, covering:

  • Currencyization of United States Treasury Debts
  • Money market funds
  • Private credit and corporate bonds

According to the projecters, one of the first markets would allow institutions to borrow in tokenized collateral and access the existing liquidity network of the agreement. And it shows that Aave is taking RWA lending as an important direction for the V4 expansion.

The founder of Aave, Stani Kulechov, states that Avalanche has a more mature Aave market and its monetized assets are growing ecologically and are therefore suitable for the first external extension of the V4 network. He claims that one of the first markets planned on Avalanche was around monetized asset mortgages.

Avalanche, the recently added monetized infrastructure

This deployment is also linked to the recent movement of Avalanche across the chain and in the direction of monetization. Previously, Aave has expanded the use of the Chainlink Trans-chain Interoperability Protocol CCIP as the default cross-chain infrastructure for Aave App and StableVaults.

According to Aave, CCIP now covers the functions of token transfers, treasury management, governance enforcement, GHO stable currency transfers and governance messaging. A uniform interoperability layer would help agreements to advance new markets in a multi-chain environment.

In addition, Bridgetower announced on 13 July that it had completed the monetization of more than $11.1 billion of real-life production assets on Avalanche through Chainlink infrastructure, including the Arizona Cooper-Gold project. According to reports, the deal also pushed Avalanche to fifth in the RWA.xyz ranking of real net asset inflows.

AAVE Price is still under pressure

Despite new developments in the up-line product, the short-line performance of AAVE tokens has not improved significantly. According to the data, the AAVE newspaper US$ 96.66 dropped by more than 2 per cent on a 24-hour basis, continuing the downward trend of the past week.

This suggests that the expansion of the agreement and ecological progress have temporarily failed to offset the overall market pressure caused by currency fluctuations. At the product level, however, Aave has begun to deploy V4 from a single point in the Ether to a multi-chain extension for the agency and the RWA scene.