Aave V3 Goes Live on Monad with 12 Initial Assets
Aave has officially deployed its V3 lending protocol on the Monad network, according to ChainCatcher. The initial market supports 12 crypto assets, including USDT, USDC, Aave's native stablecoin GHO, USDe, mUSD, AUSD, WETH, cbBTC, wstETH, weETH, syrupUSDC, and sUSDe. This diverse asset set covers major stablecoins, wrapped native tokens, and multiple liquid staking derivatives, offering users a wide range of lending and borrowing opportunities. The deployment extends Monad's decentralized finance (DeFi) infrastructure and marks Aave's expansion into a new high-performance layer-1 blockchain.
First-Ever Chainlink Smart Value Recapture (SVR) Activation at Launch
A notable feature of this deployment is that Aave has enabled Chainlink's Smart Value Recapture (SVR) mechanism right from the start, a first for any Aave market. SVR captures a portion of the maximum extractable value (MEV) generated during the liquidation process and returns it to the protocol, thereby boosting protocol revenue and reducing user liquidation penalties. By integrating deeply with Chainlink's oracle network, SVR ensures a fairer distribution of liquidation benefits and mitigates the negative impact of MEV front-running. This innovation reflects Aave's proactive approach to optimizing protocol economics.
$15 Million Incentive Program and GHO Ecosystem Strategy
The Monad Foundation has committed $15 million in incentive funds over the first 12 months following the launch, aimed at attracting users and liquidity to the Aave V3 market. In addition, the foundation has agreed to purchase 10 million GHO (Aave DAO's overcollateralized stablecoin) and hold it for at least six months, providing stable demand for GHO. Aave DAO itself is contributing 500,000 GHO as incentives to support application development and ecosystem growth on Monad. These incentive measures are designed to catalyze early adoption and liquidity depth.
This partnership strengthens Aave's multi-chain footprint and demonstrates Monad's appeal as a high-performance layer-1 for top-tier DeFi protocols. As Monad's mainnet matures, Aave V3 is poised to become the core lending market on the chain, further bridging liquidity across ecosystems.