Aave V4 Arc Markets connects dollar and euro borrowing to shared liquidity

Aave V4’s Arc Markets has connected U.S. dollar and euro borrowing to a shared liquidity pool, according to ChainCatcher. The deployment went live on Sept. 16 and includes four reserve assets in total. In the setup, the Forex market allows borrowers to post EURC as collateral, even though EURC is not an eligible collateral asset in Arc’s Main market. The two markets therefore draw from the same source of liquidity. The update points to a market structure in which collateral eligibility can differ across markets while funding remains linked through one shared liquidity base.