Deployment Overview and Asset List
Aave has officially deployed its V3 lending protocol on the Monad network, supporting 12 assets in the initial market: USDT0, USDC, Aave’s native stablecoin GHO, USDe, mUSD, AUSD, WETH, cbBTC, wstETH, weETH, syrupUSDC, and sUSDe. This diverse asset mix covers stablecoins, liquid staking tokens, and major crypto assets, providing Monad ecosystem users with broad lending and borrowing options. The deployment extends Aave’s presence across layer-1 and emerging networks, strengthening its multi-chain strategy.
Chainlink SVR Enabled from Launch
Notably, this is the first time Aave has integrated Chainlink’s Smart Value Recovery (SVR) mechanism at the very outset of a new market. SVR is designed to capture a portion of MEV generated during liquidations and return it to the protocol, thereby increasing protocol revenue and reducing borrowers’ liquidation costs. Previously, SVR was introduced gradually in established markets; its immediate activation on Monad signals a commitment to MEV efficiency and protocol sustainability from day one.
Incentives and Governance Commitments
According to Aave governance documents, the Monad Foundation will allocate $15 million in incentive funds over the first 12 months post-launch to stimulate liquidity and borrowing activity. Additionally, the Foundation has agreed to purchase 10 million GHO tokens and hold them for at least six months, supporting the stability of Aave’s decentralized stablecoin. In a reciprocal move, Aave DAO will contribute 500,000 GHO as additional incentives to boost application development on Monad. This two-sided incentive structure is designed to quickly achieve healthy lending supply-demand equilibrium and reduce cold-start risks common in new DeFi markets.
The deployment also benefits from Monad’s high-performance parallel execution architecture, which could lower transaction costs and improve liquidation speed—factors that complement SVR’s value capture. As Aave V3 expands across more networks, the Monad integration serves as a testbed for simultaneous SVR adoption and aggressive incentive design.