Jack Paul 
Aave’s V4 deployment on Circle’s Arc blockchain now gives borrowers two connected markets: a dollar-euro Forex market and a broader Main market. Both draw funds from the same Core Hub. The deployment went live Sept. 16 with USDC, EURC, wrapped Ether and Circle’s wrapped Bitcoin, cirBTC. The setup matters because the hub changes how liquidity is shared, though the launch caps are conservative.
Two markets, different collateral
The practical split is collateral. Main accepts USDC, WETH and cirBTC, but not EURC, according to the deployment configuration. Forex lets users pledge either USDC or EURC to borrow the other. That gives euro-token holders a way to borrow dollars without selling their EURC. Aave said Oct. 12 that the Arc deployment had crossed $300 million in deposits. Arc highlighted the markets in an Oct. 15 walkthrough with Kolten of Aave. Onchain logs show the Core Hub processing supplies and borrowing through Main on Oct. 15.
How V4 spokes work
In V4, users deal with borrowing modules called spokes. Those modules send deposits to a hub and draw loans from it, while keeping separate collateral settings and limits. Aave’s documentation describes this as a change from V3’s market-per-pool design. Connected markets can use shared liquidity instead of each needing a separate deposit base. Arc launched with one Core Hub and two borrowing markets. All four launch assets are borrowable in Main. Forex is limited to USDC and EURC. Separate supply-only tokenization spokes turn deposits into positions that external vaults and aggregators can use, without enabling borrowing through those integrations.
Launch limits and freeze risk
The launch configuration adopted LlamaRisk’s token-denominated supply and borrowing limits. For Main, those were 56 million USDC supplied and 51 million borrowed; 20 million EURC supplied and 18 million borrowed; 1,100 cirBTC supplied and 220 borrowed; and 24,000 WETH supplied and 4,800 borrowed. Forex’s initial limits were 13 million USDC supplied and 11 million borrowed, plus 10 million EURC supplied and 9 million borrowed. LlamaRisk cited limited secondary-market liquidity for EURC as the reason for conservative Forex caps. These are launch limits, not a current reading of remaining capacity.
Ethereum’s V4 deployment also uses shared hub liquidity and has a Forex Spoke listed in Aave’s contract directory. Arc also carries network-level controls relevant to borrowers. In its prelaunch technical assessment, Aave Labs said USDC is Arc’s gas asset and an issuer freeze can stop an address transacting altogether. Its tests found that a frozen borrower’s position could still be repaid or liquidated by a third party. I think that is a useful detail, though it is not a full risk review.