🔍 Aave V4 Opens Security Review

**USDG sees explosive growth on Aave V4** Global Dollar's USDG deposits on Aave V4 increased fivefold within a single week. The protocol responded by raising the supply cap from its previous limit to 20 million USDG. **Key details:** - Growth driven by recently launched incentive program for USDG suppliers - Supply cap adjustment allows protocol to meet rising user demand - Similar incentives also active for Frax Finance's frxUSD on the platform The rapid adoption follows Aave V4's recent milestone of crossing $50 million in total deposits. The protocol continues adjusting caps as it matures and user activity expands.

**Aave Labs' UK subsidiaries have received regulatory approval from the Financial Conduct Authority (FCA).** Push Labs Ltd. and Push Virtual Assets Ltd. (collectively "Push by Aave Labs") are now registered as cryptoasset exchange providers in the UK. The approval includes: - Registration as a cryptoasset exchange provider - Authorization under the Electronic Money Regulations 2011 (firm reference: 900984) - Permission to issue electronic money These regulatory permissions enable Push by Aave Labs to operate cryptoasset activities and payments infrastructure in the UK market. **The company plans to offer zero-fee stablecoin on/off-ramping services** as part of its strategy to onboard the next million users through regulated financial products. The FCA approval represents a significant milestone for Aave Labs' expansion into regulated financial services within the United Kingdom.

**Major Progress in rsETH Recovery** Kelp DAO has sent the second-to-last batch of rsETH to the LayerZero lockbox, with the final amount scheduled for Monday. This will fully restore rsETH's backing after the April 18 bridge exploit. **Current Status:** - WETH loan-to-value ratios restored to pre-incident levels - All Aave markets operating normally - rsETH bridging between mainnet and L2s fully functional - Users can withdraw rsETH across all affected markets **Recovery Timeline Recap:** - May 12: Exploiter's rsETH burned on Arbitrum - May 13: First tranche transferred, bridging reopened - May 14: rsETH withdrawals enabled - May 17: WETH LTVs restored across all markets - May 22: Second-to-last batch sent The coordinated "DeFi United" effort involved contributions from multiple protocols and successfully navigated legal complications, including a court-modified restraining notice on Arbitrum DAO funds. The recovery demonstrates cross-protocol collaboration in addressing DeFi incidents.

Aave has released a case study detailing how its yield-bearing assets integrate with the MetaMask Card for everyday purchases. **Key Features:** - Users can spend yield-bearing stablecoins at any Mastercard-accepted location - Partnership combines Aave's liquidity protocol with MetaMask's payment infrastructure - Service currently available across Europe and the United States The integration allows users to maintain their assets in yield-generating positions while using them for daily transactions through the MetaMask Card.

Aave has launched on Arbitrum Earn, a new feature within the Arbitrum Portal. Users can now supply assets and earn Aave-powered yield directly through the portal interface. The integration leverages LiFi Protocol's cross-chain routing technology, enabling users to: - Swap assets from different chains - Access yield opportunities - Manage vaults in a single location Arbitrum Earn also supports other protocols including Morpho and Pendle, providing users with multiple yield options through one unified interface. The service is accessible at [portal.arbitrum.io/earn](http://portal.arbitrum.io/earn)