According to CoinMeta, Stani Kulechov, the founder of AAVE, tweeted that the hubs and radiating markets of AAVE V4 are isolated by default based on risk conditions. After risk adjustment, markets can share liquidity through these hubs within set limits, in order to reduce capital fragmentation and improve utilization rates and capital efficiency. The V4 codebase has significantly shrunk compared to V3; it has currently attracted $1.2 billion in deposits and is deployed in Ethereum, Avalanche, and Arc. V4 also supports third-party market managers such as EtherFi in building and managing complete market structures, and participates in a broader range of lending market earnings.