Image Credit: sentora.com
- Sentora launched three external risk manager markets on Aave V4 on Oct. 22.
- The new markets enable users to borrow RLUSD, PYUSD, and OUSD against specific collateral.
- Sentora manages collateral and lending risk while Aave DAO retains underlying contract ownership.
DeFi risk manager Sentora has launched three lending markets on Aave V4, allowing users to borrow RLUSD, PYUSD, and OUSD against selected collateral on Ethereum. The markets opened on Oct. 22 and are available through Aave Pro.
These are Aave V4’s first markets run by an external risk manager. Sentora sets their lending rules, while Aave’s decentralized autonomous organization, or DAO, retains ownership of the underlying contracts.
Three Markets Offer Different Borrowing Options
The RLUSD Yield market offers loans in Ripple’s RLUSD stablecoin against USDe, PRIME, mWIN and PST. The OUSD Yield market accepts the same four collateral assets for borrowing OUSD.
PRIME is linked to Figure-originated home equity loans. Midas’ mWIN represents a fixed-income strategy managed by Wellington Management, while Huma Finance’s PST earns income from payment financing.
The Bluechip market lets users borrow RLUSD, PayPal USD (PYUSD) or OUSD against kBTC. Kraken issues kBTC as a token backed by Bitcoin held in its custody.
All three markets draw their borrowing funds from a dedicated Sentora liquidity pool on Ethereum. They use the same underlying lending code as other Aave V4 markets, with their own collateral and risk settings.
Sentora Manages Collateral and Lending Risk
Sentora chooses the accepted collateral, borrowing limits, interest-rate models and liquidation settings. It also selects the price feeds used to value assets and manages changes as market conditions evolve.
The arrangement places day-to-day risk management with Sentora. Aave’s usual risk advisers are not assigned to monitor these markets, recommend parameter changes or respond to incidents.
Sentora has also extended its Risk Radar monitoring system to Aave V4, starting with its own markets. It tracks loan health, liquidations, borrower concentration and funds available for withdrawal.
Aave Retains Contract Control
Changes that increase risk, such as raising borrowing limits, must wait 48 hours before taking effect. That delay makes proposed changes visible on the blockchain before execution. Sentora can take risk-reducing actions immediately, including freezing assets or pausing markets.
Aave DAO retains the power to upgrade the contracts and remove Sentora’s operational permissions through a governance proposal. It cannot cancel an individual change queued during the 48-hour waiting period.
New collateral listings and additional liquidity pools face a separate two-week period during which Aave’s appointed service providers can object. An objection pauses the addition and sends it to a binding governance vote.
Service providers are not assigned to review these additions, so an unopposed proposal does not necessarily mean it has been assessed. Protocol revenue from the markets is split equally between Sentora and Aave DAO.
