Spoke base rate + your collateral basket
Defaults are Aave's own published V4 example (5% GHO base rate; WETH 0%, LINK 30%, UNI 40% Asset Liquidity Risk). Edit any field โ leave a row's value at 0 to skip it.
Weighted Risk Premium vs a flat V3-style rate
Effective rate at different weighted risk levels
Same base rate and borrow amount โ only your basket's weighted Asset Liquidity Risk changes.
| Weighted risk | Effective rate | Yearly interest |
|---|
Why the same asset now has different rates for different people
Aave V3 charges every borrower in a pool the same utilization-based interest rate โ your collateral mix is irrelevant to your rate, it only matters for your liquidation threshold. Aave V4's hub-and-spoke architecture, live on Ethereum since March 30, 2026 and expanded to Avalanche in July, changes that for rate-setting too. Each Spoke still has a base rate, but on top of it V4 adds a per-user Risk Premium computed from the specific collateral you've posted: your effective rate = base rate ร (1 + weighted-average Asset Liquidity Risk of your basket). Aave's own explainer illustrates this with a 5% GHO base rate where a WETH-only borrower (0% Asset Liquidity Risk) pays exactly 5%, while a borrower using LINK (30% risk) or UNI (40% risk) as collateral accumulates extra premium debt on top of the same base rate โ for the same borrowed asset, in the same Spoke, at the same time.
The Asset Liquidity Risk score itself runs from 0% (highest-quality collateral, essentially no premium) up to 1000% (maximum risk) and is set by Aave governance with Risk Service Provider input โ it is not something the protocol computes automatically from market data, it's a configured parameter per asset per Spoke. When you post multiple collateral types together, V4 averages their Asset Liquidity Risk scores weighted by dollar value, exactly the same shape of calculation as a weighted liquidation threshold (see the Multi-Collateral Health Factor calculator) โ except here the weighted number drives your interest cost instead of your liquidation point. A basket that's mostly blue-chip collateral stays close to the base rate; leaning on higher-risk assets pulls your effective rate up even though nothing about the asset you're borrowing changed.
This sits inside V4's broader hub-and-spoke redesign: instead of V3's single shared liquidity pool per market, V4 runs three segregated Liquidity Hubs โ Core (the default, broadest venue), Prime (controlled collateral posture for suppliers who want it), and Plus (strategy-heavy stablecoin activity behind its own caps) โ each routing credit to isolated Spokes with their own asset-admission rules, without hub liquidity mixing between them. The Risk Premium formula on this page operates inside whichever Spoke you're in; the base rate itself already differs by hub and Spoke before your personal premium is even added. Treat the 0%/30%/40% defaults here as Aave's own illustrative example, not a live governance snapshot โ always check the current Aave V4 app for your exact Spoke's real parameters before sizing a real position.
FAQ
How is the Aave V4 borrow rate different from V3?
Aave V3 gives every borrower in a pool the same utilization-based rate regardless of which collateral they posted. Aave V4 adds a per-user Risk Premium on top of the Spoke's base rate: your effective rate = base rate x (1 + weighted-average Asset Liquidity Risk of your own collateral basket). Two users borrowing the same asset in the same Spoke can now pay different rates depending on what they posted as collateral.
What is Asset Liquidity Risk in Aave V4?
Asset Liquidity Risk is a per-asset score from 0% (highest quality, e.g. WETH) to 1000% (maximum risk) set by Aave governance and Risk Service Providers. Aave's own V4 risk-premium explainer illustrates it with WETH at 0%, LINK at 30% and UNI at 40% collateral risk against a 5% GHO base rate โ this calculator uses those published examples as editable defaults, not invented numbers.
How is the weighted Risk Premium calculated across multiple collateral assets?
Weighted Risk Premium = sum(collateral_value_i x AssetLiquidityRisk_i) / total collateral value โ a dollar-weighted average, the same shape as a weighted liquidation threshold, but it drives your interest rate instead of your liquidation point. Effective borrow rate = base rate x (1 + weighted Risk Premium).
What is the Aave V4 hub-and-spoke model and why does it matter here?
V4 replaced V3's single shared pool with three segregated Liquidity Hubs (Core, Prime, Plus) that each hold their own capital and route credit to isolated Spokes with their own asset-admission rules and base rates. Liquidity does not mix between hubs. The Risk Premium formula on this page applies inside any one Spoke โ the base rate itself already varies by which hub/Spoke you borrow from.
Are the Asset Liquidity Risk percentages on this page official Aave parameters?
The 0% / 30% / 40% defaults come directly from Aave's own V4 risk-premium blog post as illustrative examples. Real governance-set values differ by asset, Spoke and change over time via Aave governance and Risk Service Provider proposals โ always check the live Aave V4 app for the exact current parameters of your specific Spoke before relying on this for a real position.