Aave V4 Arc Market Holds $76 Million USDC with Minimal Borrowing

Aave V4 went live on the Arc Layer‑1 network on September 16, quickly drawing a large supply of USDC. By the following day, data showed about $76 million supplied, while borrowing remained under $100,000, keeping utilization near 0.1%.

Supply surge and cap limits

The Arc Main Spoke launched with a 56 million USDC add cap and a 51 million USDC draw cap. Within hours the add cap was reached, prompting LlamaRisk to propose raising the add cap to 150 million USDC. The increase would lift the supply ceiling without changing the borrowing limit.

Utilization and rates

With borrowing so low, the protocol’s interest‑rate model displayed 0.00% supply and borrow APRs on September 17. Low utilization keeps base rates minimal, reflecting the abundance of idle liquidity.

Implications for market activity

The next indicator of adoption will be a rise in borrowed USDC, utilization, and rates. If borrowing remains low, the market will continue to function primarily as a liquidity pool rather than an active credit venue.

Broader context

LlamaRisk noted that total Aave V4 deposits rose from $577.1 million to $708.6 million across all hubs, with the Arc Core accounting for roughly $57.6 million of that total at the time of the snapshot.