Aave has launched its first external lending markets on the V4 platform as part of a partnership with the institutional DeFi platform Sentora, allowing users to borrow three stablecoins against selected crypto assets on Ethereum.
According to Aave's official statement, Sentora manages three markets supporting borrowing of RLUSD from Ripple, PYUSD from PayPal and OUSD from Origin, with each market operating with its own collateral requirements and risk control mechanisms.
The launch of Aave V4 introduces external market management, allowing independent risk managers to run specialized lending markets using the protocol's infrastructure, while remaining under the protection of safeguards established by Aave's leadership.
Sentora is responsible for managing the markets and setting risk parameters, including which assets borrowers can use as collateral. Aave DAO retains ownership of the underlying contracts and controls changes that could expose lenders to additional risks.
Users can access these three markets through Aave Pro, the platform's interface for browsing lending products.
Sentora adds three lending markets to Aave V4
All three markets operate through a dedicated Sentora liquidity hub on the Ethereum platform, which holds the assets available for borrowing and supplies liquidity to the individual lending markets.
The RLUSD yield market allows users to borrow RLUSD against four assets: USDe, PRIME, mWIN and PST. The OUSD yield market from Sentora accepts the same collateral but allows users to borrow OUSD.
The third market, called Bluechip, allows borrowing RLUSD, PYUSD and OUSD against kBTC, a bitcoin-backed asset.
Although liquidity comes from the same hub, borrowing terms on each market are separate. Sentora manages collateral settings, interest rate curves, price oracles and liquidation parameters that determine how loans are handled.
In its October 22 research article on Aave V4, Sentora described the launch as the first governance-approved Hub and Spoke deployment managed by an external curator on the Ethereum platform.
The architecture diagram published by the company lists one more market, PYUSD yield, which is expected to launch, although its collateral assets have not yet been confirmed. Currently, only the three announced markets are listed as active.
Sentora had previously worked on stablecoin lending through other DeFi protocols. In August, it was reported that the company approved FXRP as collateral in its RLUSD lending vault on the Morpho platform, allowing XRP holders to borrow stablecoins using a bridged representation of their tokens.
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