Sentora proposes AAVE V4 markets with 50% revenue share for DAO

Sentora, an institutional DeFi platform focused on risk-managed strategies, has submitted a formal governance proposal to operate independently curated lending markets on Aave V4, starting on Ethereum. The centerpiece of the deal: a clean 50/50 revenue split with the Aave DAO, covering everything from reserve factors to liquidation fees.

The proposal, filed as an Aave Request for Final Comments (ARFC), is currently in the community-feedback stage and would need to clear a Snapshot vote before moving forward. If approved, Sentora would gain control over collateral selection, risk parameters, and interest rate settings, while the Aave DAO retains ownership of the underlying smart contracts through its Governance Short Executor.

How the Hub and Spoke model works

The framework leverages Aave V4’s modular architecture, specifically its Hub & Spoke design. Three initial spokes have been proposed, each focused on yield-bearing blue-chip collateral. On the borrowing side, the instance would be restricted to a specific set of stablecoins: RLUSD, PYUSD, and OUSD.

All protocol revenue generated by Sentora’s instance gets split evenly between Sentora and the Aave DAO. The DAO bears zero operational costs — no infrastructure bills, no risk management overhead, no personnel expenses.

Governance guardrails and risk controls

Any risk-increasing changes carry a 48-hour timelock, giving the community and service providers a window to review and potentially intervene. New asset listings require a two-week review period before activation. Service providers within the Aave ecosystem retain veto capabilities over changes they deem dangerous.

The Aave DAO can revoke Sentora’s operational roles at any time through a governance vote and can also vote to rescind Sentora’s authority entirely.

Aave V4 momentum and Sentora’s track record

Total value locked in V4 rose from $402M on September 15 to $660M by September 29, a roughly 64% increase in just two weeks.

Sentora previously orchestrated a $100M ETH loan for Aave V3’s Lido markets, giving it credibility as an institutional-grade operator capable of handling significant capital flows within Aave’s infrastructure.

RLUSD (Ripple’s stablecoin), PYUSD (PayPal’s stablecoin), and OUSD (Origin Dollar) represent a mix of institutional-backed and DeFi-native stablecoins. Restricting borrowable assets to these three creates natural demand for each of them within Aave’s ecosystem.