A proposal on Aave governance seeks community approval to activate Aave V4 on Ethereum mainnet with what it describes as a security-first rollout. The initial setup would use conservative risk settings and a deliberately limited Hub and Spoke configuration rather than a broader launch from day one.
Alongside the activation plan, the proposal outlines two rounds of capacity changes across several hubs to replenish collateral reserves, ease heavily used draw caps, expand USDG-related lines and support further growth. The adjustments cover Ethereum Core, Ethereum Plus, the Global Dollar Hub and the Avalanche Core Hub.
Activation plan centers on a narrow initial configuration
The proposal frames Ethereum mainnet activation as the next step for Aave V4, but with strict limits on the initial market design. Rather than opening with a wide set of parameters, the plan calls for conservative caps and a tightly scoped hub structure intended to prioritize security in the first phase.
That approach is paired with ongoing monitoring of hub utilization after deployment. The stated goal is to let the market expand in measured steps as borrowing demand and collateral usage develop across the supported hubs and spoke assets.
Round 13 would add about $100 million of capacity
Under the proposal, Round 13 would increase Add Cap capacity by about $100 million in total. The largest share, $65 million, would go to Ethereum Core, followed by $20 million for the Global Dollar Hub, $13 million for Avalanche Core and $2 million for Ethereum Plus.
The package also includes corresponding draw-cap relief, reflecting pressure in parts of the system where existing borrowing limits have seen high utilization. The text says the changes are meant to restore room for deposits and borrowing while keeping the broader launch conservative.
Round 14 targets another $46 million, led by Global Dollar
A further set of changes in Round 14 would add roughly $46 million in Add Cap capacity. Of that total, $22 million is allocated to the Global Dollar Hub, $19 million to Ethereum Core and $5 million to Avalanche Core.
The proposal links these increases to continued demand across the network and to the need to maintain available room in markets tied to USDG and related assets. In the accompanying summary, examples of affected spoke assets include USDT, WETH, wstETH, USDG, syrupUSDG, WAVAX and sAVAX.
Credit-line and draw-cap adjustments are part of the package
The activation proposal is not limited to headline cap additions. It also includes draw-cap adjustments across the listed hubs and changes to specific credit lines, including frxUSD from Core to Plus.
Taken together, the revisions are designed to balance collateral availability and borrowing capacity as Aave V4 comes online on Ethereum. The proposal presents those steps as operational tuning needed to support usage without broadening risk settings too aggressively at launch.
Security Council action would follow approval
If the community approves the proposal after review, the next confirmed step would be implementation through the Aave Security Council. The summary states that the cap and draw-cap changes would then be applied onchain as part of the V4 activation process.
After that, monitoring of hub utilization is expected to continue, with future adjustments possible if reserves refill quickly or draw caps come under renewed pressure. The proposal does not present those later changes as automatic, only as part of continued oversight once Ethereum mainnet activation begins.
Source: governance.aave.com