Aave V4 has launched its first externally curated lending markets, with Sentora managing three markets on Ethereum. Sentora sets the risk parameters, while Aave DAO keeps ownership of the underlying contracts.
Aave has launched its first externally curated lending markets on V4 through a partnership with institutional DeFi platform Sentora. The markets let users borrow three stablecoins against selected crypto assets on Ethereum.
Three markets, three borrowable stablecoins
According to Aave's announcement, Sentora is managing three markets that support borrowing Ripple's RLUSD, PayPal's PYUSD and Origin's OUSD. Each market operates under its own collateral requirements and risk controls.
The RLUSD Yield market lets users borrow RLUSD against USDe, PRIME, mWIN and PST. Sentora's OUSD Yield market accepts the same collateral but lends OUSD instead. A third market, called Bluechip, supports borrowing RLUSD, PYUSD and OUSD against kBTC, a Bitcoin-backed asset.
All three draw liquidity from a dedicated Sentora Liquidity Hub on Ethereum, yet each has separate borrowing conditions. Sentora manages the collateral settings, interest rate curves, price oracles and liquidation parameters that determine how loans operate.
Aave DAO keeps control of safeguards
Sentora's independence has limits. Aave governance retains ownership of the contracts and sets safeguards for externally curated Hubs.
Any change that raises market risk must pass through a 48-hour timelock before taking effect. New assets require governance review before they can be added to the markets.
Hub and Spoke design underpins the launch
Aave V4 uses a Hub and Spoke architecture that separates where liquidity is held from the markets where users deposit collateral and borrow. Liquidity Hubs hold available funds, while individual Spokes determine which assets borrowers can use and when positions become eligible for liquidation.
Aave Labs reported that V4 deposits had surpassed $1 billion during September, alongside $310 million in active loans. Sentora's published architecture diagram also lists a PYUSD Yield market as planned, but only the three announced markets are currently listed as active.
Source: crypto.news
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