Aave founder Stani clarified that Aave V4’s Hub-and-Spoke design separates markets by default according to their risk profiles, while allowing markets with similar risks to share liquidity through a Hub within set limits. He said full liquidity isolation could fragment funds, reduce utilization and raise costs for users. Aave V4 has attracted about $1.2 billion in deposits and is deployed on Ethereum, Avalanche and Arc. The system also supports third-party curators such as EtherFi. Stani added that V4’s codebase is significantly smaller than Aave V3’s, while each Spoke can access Hub liquidity directly instead of building liquidity from zero like a traditional curated vault.