Aave V3 Launches on Monad with First-Ever Chainlink SVR Activation and $15M Incentive Program

News Editor

2026-07-02 23:31:15

Aave has deployed its V3 lending protocol on the Monad blockchain, supporting an initial 12 assets including USDT, USDC, GHO, USDe, and multiple yield-bearing tokens. For the first time, Aave enables Chainlink's Smart Value Recapture (SVR) mechanism at launch, returning liquidation MEV to the protocol. The Monad Foundation commits $15 million in incentives over 12 months and agrees to purchase 10 million GHO tokens with a 6-month lock-up. Aave DAO also contributes 500,000 GHO to support dApps on Monad. This deployment marks Aave's expansion into Monad's high-performance ecosystem and introduces an innovative approach to MEV redistribution.

AaveMonadV3 lending protocolChainlink SVRMEV recaptureGHO stablecoinlending incentivesDeFi expansion

Deployment Overview: 12 Assets in Initial Market

Aave has officially deployed its V3 lending protocol on Monad. The initial market supports 12 assets: USDT, USDC, Aave's native stablecoin GHO, USDe, mUSD, AUSD, WETH, cbBTC, wstETH, weETH, syrupUSDC, and sUSDe. This diverse selection covers major stablecoins, ETH and its liquid staking derivatives, as well as a Bitcoin wrapper (cbBTC), providing Monad users with a comprehensive suite of lending and borrowing options.

First-Ever Chainlink SVR Activation

A significant milestone of this deployment is the activation of Chainlink's Smart Value Recapture (SVR) mechanism from day one. SVR captures part of the maximal extractable value (MEV) generated during liquidations and returns it to the Aave protocol, rather than allowing it to be fully absorbed by block builders or MEV searchers. This reduces value leakage from the protocol during liquidations and enhances its economic sustainability. As a leading DeFi lending platform, Aave's adoption of SVR sets a new industry standard for MEV governance.

$15M Incentive Program from Monad Foundation and DAO

To bootstrap liquidity and user adoption, the Monad Foundation will provide $15 million in incentives over the first 12 months post-launch. Additionally, the Foundation has committed to purchasing 10 million GHO tokens and holding them for at least six months, strengthening GHO's reserve backing. Complementing this, the Aave DAO has approved 500,000 GHO in incentives specifically for applications built on Monad using Aave. This dual-incentive structure is expected to rapidly attract both liquidity providers and developers, fostering a vibrant lending market within the Monad ecosystem.

This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan.

200

Disclaimer:

The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.

Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.