Aave V4 Arc market sees $76 million USDC supply with minimal borrowing

CryptoSlate reported that Aave V4 went live on Arc on September 16, gathering about $76 million in USDC by the following day. Point-in-time figures from Aavescan indicated that fewer than $100,000 of this supply had been lent out, resulting in utilization close to 0.1%. Both supply and borrow annual percentage rates registered at 0.00% during checks on September 17.

After the initial ceiling hit its limit within hours, LlamaRisk suggested raising the Arc Main Spoke USDC addition ceiling from 56 million to 150 million tokens. This change would increase deposit capacity while leaving the 51 million USDC draw limit unchanged.

LlamaRisk also tracked Aave V4 deposits across six hubs, which climbed from $577.1 million to $708.6 million between the Round 16 snapshot and September 16. At that time, Arc Core held approximately $57.56 million of the total.

The initial data did not specify if distinct incentives were in place or if a small number of wallets provided the bulk of the supply. LlamaRisk stated that borrowing volume, utilization, and rates need to increase to demonstrate Arc is operating as a credit market.