AAVE V4'S LIQUIDITY HUB MODEL CHANGES HOW DEFI BOOTSTRAPS MARKETS

Summary from the TLDR Crypto newsletter

Aave V4 introduces a hub-and-spoke liquidity architecture where liquidity is pooled in shared hubs and allocated to multiple spokes with distinct collateral and risk configurations. This allows new markets to launch using existing liquidity, making incentives far more capital-efficient and avoiding repeated bootstrapping from zero. Once a network establishes its first Aave V4 hub, that liquidity becomes reusable infrastructure for spinning up new markets, use cases, and expansions indefinitely.