Aave solved a problem DeFi lending has had for 4 years
Imagine a bank with 10 branches
Each branch holds its own money, no sharing. Branch A runs dry can't borrow from B, even if B has excess
That's exactly how @aave V3 worked
Every lending market was its own isolated pool. Liquidity trapped, going nowhere
V4 changes everything:
One central Liquidity Hub holds the capital
Stablecoins, RWAs, e-Mode are now Spokes they plug in and draw from the Hub when needed
Result: deeper liquidity, better rates, new markets don't need to bootstrap from scratch
Flexibility and deep liquidity, finally both at once
twitter.com/0xPhoenix77/status...