Aave Labs confirmed in its April 2026 update that Aave V4 has launched on Ethereum mainnet with guarded caps and early production validation underway. The team also coordinated the protocol's response to an rsETH incident, working with risk and security contributors to contain exposure. Additional work includes Scroll market deprecation, new asset onboarding, and continued development of the sGHO architecture.
For Armada's crypto desk, V4's mainnet launch with conservative initial caps is significant because Aave rates serve as a benchmark for crypto-collateralized repo pricing. As V4 caps expand and liquidity migrates from V3, the rate environment for ETH, stablecoin, and liquid staking token borrowing will shift. The rsETH incident also highlights smart contract and oracle risk in LST collateral, which is directly relevant to Armada's haircut assumptions for ETH-derivative assets.