Aave V4 deposits hit record 806 million USD after a 30 percent weekly surge, and the data shows where DeFi lenders are really putting their money
Aave’s newest lending engine is no longer a quiet experiment. Onchain dashboard data shows Aave V4 deposits reached a record 806 million USD on Aug. 27 after climbing 30 percent in seven days, more than doubling in under four weeks as users rotated capital into the protocol’s redesigned hub-and-spoke markets.
The milestone extends a run of rapid growth that began earlier in August. According to the dashboard figures, V4 deposits passed 500 million USD on Aug. 19, exceeded 600 million USD two days later, and then added more than 200 million USD over the following six days. At the start of the month, deposits stood near 350 million USD, and in mid-August the system was reported at roughly 400 million USD. The value supplied to V4 has therefore more than doubled in less than a month.
Deposits on the Ethereum network alone passed 500 million USD on Aug. 25, according to the same dashboard.
Ethereum Core leads six listed markets
Aave V4 splits capital across several markets with separate collateral rules, borrowing limits, and risk settings, rather than pooling every asset together. Ethereum Core is the largest of the six listed markets, holding 378 million USD, or about 47 percent of all V4 deposits. EtherFi Cash on Optimism follows with 257 million USD, giving the two markets a combined 635 million USD, or nearly 79 percent of the version’s total deposits.
Among the remaining markets, Ethereum Global Dollar holds 75 million USD and Ethereum Prime accounts for 63 million USD. Avalanche Core has attracted 18 million USD, while Ethereum Plus holds another 15 million USD. Together, the six listed markets account for the full 806 million USD reported on the dashboard.
Borrowing has risen alongside deposits. Active V4 loans have reached 206 million USD, with EtherFi accounting for 62 million USD of that total as users deposit wrapped EtherFi staked Ether, known as weETH, as collateral to borrow wrapped Ether. The EtherFi market has reached a utilization rate of 92 percent, according to the dashboard.
High utilization can lift returns for suppliers, but it also raises borrowing costs and leaves less immediately available liquidity for withdrawals, a trade-off lenders watch closely in fast-growing markets.
WeETH dominates the deposit mix
WeETH is also the largest individual asset supplied to V4, with deposits of 97 million USD. The Global Dollar stablecoin, USDG, ranks second at 90 million USD, followed by WETH and USDC at 81 million USD each. LiquidETH holds 77 million USD, liquidUSD accounts for 58 million USD, and wrapped Bitcoin deposits have reached 54 million USD. The seven named assets together represent 538 million USD, roughly two-thirds of all V4 deposits.
The concentration echoes earlier findings about Aave’s broader lending system. A recent crypto.news analysis of Aave’s debt concentration found that Ether staking and restaking tokens, including weETH, rsETH, and wstETH, made up about 66.2 percent of collateral among the protocol’s largest leveraged positions, with weETH alone accounting for roughly 42 percent. The same analysis found that 9 percent of positions carried roughly half of Aave’s total debt, with average health factors near 1.06 for the group.
Those figures cover the lending system beyond the new V4 markets and should not be read as a direct measure of V4 risk. A health factor below 1 triggers automatic liquidation under Aave’s rules, so a 1.06 average among the largest leveraged positions signals thin cushions in places, even as the new markets expand.
Hub-and-spoke versus the 31 billion USD incumbent
V4’s architecture separates markets into liquidity hubs and specialized spokes. Hubs manage supplied capital and accounting, while spokes set the terms for individual borrowing markets, including which collateral is accepted and how much users can borrow. The design was presented at the V4 launch in April as a way to create lending markets with tailored risk controls without dividing liquidity across entirely separate pools, with supported uses including fixed-rate loans, tokenized real-world asset collateral, and structured credit.
Aave’s DAO previously approved 25 million USD in stablecoin funding and 75,000 AAVE tokens for protocol development, framing V4 as the system’s long-term technical base.
For now, scale still belongs to the older system. Aave V3 holds approximately 31 billion USD in deposits, nearly 38 times the amount recorded in V4, which shows most capital remains in the incumbent version even as deposits flow into the new one.
Aave also launched V4 on Avalanche in July, making that network its first expansion beyond Ethereum and Optimism. Avalanche Core currently accounts for 18 million USD of V4 deposits, a small but strategically significant foothold for a protocol betting that its next-generation design can carry DeFi lending into institutional-grade territory.
Whether V4’s 30 percent weekly growth rate holds is another question. But with deposits above 800 million USD, utilization near full in its largest spoke, and a clear migration path from a 31 billion USD parent, Aave’s newest engine has moved decisively past its trial phase.
806M sounds big until you remember V3 is sitting on 31B. 38x gap, the migration barely started
fair but 30% in a week and the EtherFi spoke at 92% utilization is not nothing. supply caps will bind before V3 does
the EtherFi spoke at 92 percent is the tell tho. caps bind, rates spike, depositors chase yield spoke to spoke. 806M becomes 1B before the V3 comparison even matters
38x gap is exactly why the growth rate matters more than the absolute. v4 doubling in a month while v3 shrinks is the migration happening in real time
weETH at 42% of the largest leveraged positions with health factors around 1.06 keeps me cautious no matter which version of Aave we are talking about
806M in deposits and the etherfi market is already near full utilization. great for supplier yields until everyone tries the exit at once
^ this. utilization near 100% with lsd-heavy collateral is how you get a withdrawal queue simulator
Nobody is talking about the weETH part. 42 percent of collateral in one LST is the actual story here, V4 or not.
42 percent weETH plus the etherfi spoke at 92 percent utilization makes this a weETH bank with extra steps. supply caps need to move before the next 200M lands
passed 500M on the 19th, 600M two days later, 806M now. people were calling v4 vaporware in july lol