Aave V4 has launched on Circle’s Arc network a feature allowing users to borrow dollars (USDC) using euro stablecoins (EURC) as collateral without selling them. This function operates within a hub-and-spoke model that isolates currency risk: the Forex spoke enables EURC holders to borrow in dollars while the Main spoke maintains a 0% collateral factor for EURC. As of October 15, 2026, the Arc Core hub held approximately 294 million dollars in supplied liquidity (including 143 million in USDC) against 110 million dollars borrowed, compared to just 68,000 dollars supplied and 32,000 dollars borrowed in the Forex spoke. The 10 million EURC cap in the Forex spoke remains conservative due to thin secondary markets, and any raise will depend on the deepening of these markets. The base borrow rate for EURC, set at approximately 0.44%, reflects limited demand so far.
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