Aave V3 Deployment on Monad: Asset List and Innovation
According to ChainCatcher, Aave has officially deployed its V3 lending protocol on the Monad mainnet. The initial market supports 12 assets: USDT 0, USDC, Aave's native stablecoin GHO, USDe, mUSD, AUSD, WETH, cbBTC, wstETH, weETH, syrupUSDC, and sUSDe. The selection covers major stablecoins, native tokens, wrapped assets, and Ethereum staking derivatives, offering a broad lending and borrowing palette for cross-chain users.
The most notable technical upgrade in this deployment is that Aave has activated Chainlink's Smart Value Recovery (SVR) mechanism at launch for the first time. SVR recovers a portion of the Maximum Extractable Value (MEV) generated during liquidations – which would otherwise be captured by external searchers – and redirects it back to the protocol. This move marks a key step for Aave in optimizing liquidation efficiency and value distribution.
Incentive Plans from Monad Foundation and Aave DAO
To support the cold start of Aave V3 on Monad, the Monad Foundation will inject $15 million over the first 12 months as liquidity incentives and user acquisition funds. Additionally, the foundation has agreed to purchase 10 million GHO and commit to holding them for at least six months, strengthening GHO's base liquidity in the Monad ecosystem. Aave DAO has also pledged 500,000 GHO as incentives to further fuel on-chain applications.
This dual-incentive model with foundation stablecoin purchase reduces friction costs during the bootstrapping phase, attracting both liquidity providers and borrowers. Monad, as an EVM-compatible high-performance blockchain, offers low latency and high throughput, potentially delivering an optimized user experience for Aave V3.
Significance for DeFi Cross-Chain Ecosystem
Aave's choice to deploy on Monad expands its multi-chain footprint and tests the SVR mechanism in a fresh environment. The reciprocal commitments between Monad Foundation and Aave DAO set a precedent for cooperation between emerging L1/L2 chains and top DeFi protocols. As more assets are added and incentives continue to flow, Aave V3's Total Value Locked (TVL) and lending volume on Monad are expected to grow rapidly.