Aave V4 Goes Live on Circle’s Arc as Initial USDC Capacity Fills.
Aave V4 has launched on Circle’s Arc blockchain with USDC, EURC, cirBTC and WETH as its initial assets. The deployment went live alongside Arc’s public mainnet launch, with the first USDC capacity on the Core Hub reportedly reaching its limit within hours as around $56 million flowed into the market.
The Arc deployment uses Aave V4’s new hub-and-spoke architecture, allowing multiple lending markets to share liquidity while maintaining separate risk settings. The initial setup includes a Main Spoke for broader lending activity and a Forex Spoke focused on USDC and EURC.
The early demand has already prompted a proposal to add roughly $94 million in additional $USDC capacity. Aave is keeping initial limits conservative while more liquidity and risk data develop, with future governance potentially allowing additional spokes and tokenized real-world assets.
The bigger test now is whether the strong initial deposits translate into sustained borrowing, higher utilization and meaningful protocol revenue. Aave DAO is expected to receive at least $2 million annually from the Arc deployment under the approved arrangement, giving the launch an early commercial incentive as Circle works to build Arc around stablecoins, payments and institutional financial applications. $AAVE
#Macro Insights# #AAVE #USDC
Aave V4 has launched on Circle’s Arc blockchain with USDC, EURC, cirBTC and WETH as its initial assets. The deployment went live alongside Arc’s public mainnet launch, with the first USDC capacity on the Core Hub reportedly reaching its limit within hours as around $56 million flowed into the market.
The Arc deployment uses Aave V4’s new hub-and-spoke architecture, allowing multiple lending markets to share liquidity while maintaining separate risk settings. The initial setup includes a Main Spoke for broader lending activity and a Forex Spoke focused on USDC and EURC.
The early demand has already prompted a proposal to add roughly $94 million in additional $USDC capacity. Aave is keeping initial limits conservative while more liquidity and risk data develop, with future governance potentially allowing additional spokes and tokenized real-world assets.
The bigger test now is whether the strong initial deposits translate into sustained borrowing, higher utilization and meaningful protocol revenue. Aave DAO is expected to receive at least $2 million annually from the Arc deployment under the approved arrangement, giving the launch an early commercial incentive as Circle works to build Arc around stablecoins, payments and institutional financial applications. $AAVE
#Macro Insights# #AAVE #USDC
