Aave

**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:** The multi-week recovery effort involved coordinated action from Aave, Kelp DAO, LayerZero, and the broader DeFi community. Key milestones included liquidating the attacker's positions, progressively refilling the LayerZero adapter, and securing funding commitments from multiple protocols through the "DeFi United" initiative. Monday's final transfer will mark the completion of the technical recovery plan, returning rsETH operations to full normalcy across Ethereum Core, Arbitrum, Base, Mantle, and Linea markets.

**Aave's yield-bearing assets now enable everyday spending through the MetaMask Card** A new case study reveals how Aave, MetaMask, and Mastercard have partnered to allow users to spend their yield-bearing assets at any Mastercard-accepted location worldwide. **Key features:** - Users can spend yield-bearing stablecoins directly from their wallets - Available across Europe and the United States - Seamless integration with existing Mastercard payment infrastructure This collaboration bridges DeFi yields with traditional payment systems, allowing users to maintain their earning positions while accessing funds for daily purchases.

**Aave has launched on Arbitrum Earn**, enabling users to supply assets and earn yield directly through the Arbitrum Portal. The integration leverages LiFi Protocol's cross-chain routing technology, allowing users to: - Swap assets from different chains - Access yield opportunities - Manage vaults in a single interface Users can now interact with Aave alongside other DeFi protocols like Morpho and Pendle through the unified portal at [portal.arbitrum.io/earn](http://portal.arbitrum.io/earn). This integration simplifies the user experience by consolidating cross-chain DeFi operations into one platform.

Aave Pro now supports **frxUSD rewards** with integrated tracking and claiming functionality. **Key Features:** - Users can monitor and claim frxUSD rewards directly within the Aave Pro interface - No need to navigate to external platforms for reward management - Streamlined user experience for reward distribution The frxUSD asset is available on Aave Pro at: [frxUSD on Aave Pro](https://pro.aave.com/explore/asset/1/0xCAcd6fd266aF91b8AeD52aCCc382b4e165586E29) This integration follows a similar implementation for USDG rewards, expanding the range of stablecoin reward options available to Aave Pro users.

Aave V4 has activated incentive programs for Frax Finance's frxUSD stablecoin on its Main market. **Key Details:** - Users can now earn rewards by supplying frxUSD to Aave V4 - The incentives are available on the Main market - This follows a similar program launched for Global Dollar's USDG **How to Participate:** Supply frxUSD to the Aave V4 Main market to start earning incentives. These incentive programs aim to increase liquidity for stablecoins within the Aave ecosystem.

Aave's infrastructure is enabling mainstream crypto platforms to offer DeFi yield products to their users. A new case study examines how Kraken leveraged Aave's protocol for its DeFi Earn product through Tydro's deployment on Ink. **Key developments:** - Tydro's launch on Ink blockchain scaled to hundreds of millions in deposits - Kraken integrated Aave infrastructure to power embedded DeFi experiences - The partnership demonstrates how established platforms can offer yield access without building from scratch The case study highlights Aave's role as infrastructure that teams can build upon, rather than requiring users to interact directly with DeFi protocols. [Read the full case study](https://aave.com/blog/kraken-ink)

Kraken launched **DeFi Earn** in January 2026, a USDC yield product powered by Aave Protocol. **Key Features:** - Users earn yield directly through the Kraken app - No need to manage wallets or bridges - Offers up to 8% APY through managed onchain vaults **Milestone:** Deposits have already exceeded **$200 million**, demonstrating strong user adoption. The product simplifies DeFi access by handling the technical complexity behind the scenes while leveraging Aave's established liquidity protocol infrastructure.

Aave Pro has launched a new monitoring feature that allows users to track any Ethereum address without requiring wallet connection. **Key Features:** - Read-only view of Aave V4 positions and balances - Monitor activity across watched addresses - Customize tracked addresses with names and avatars - No wallet connection needed for monitoring This update builds on Aave Pro's interface for Aave V4, which already supports earning, borrowing, swapping, and position management. The watch feature provides transparency for users who want to track multiple addresses or observe DeFi positions without active wallet interaction.

Aave has launched **Aave Pro**, a new interface for interacting with Aave V4 Protocol. **Key features include:** - Earning and borrowing capabilities - Token swapping functionality - Position monitoring tools The interface is now available at [pro.aave.com](https://pro.aave.com/) This follows the V4 testnet launch in November 2025, which included a developer preview of the Pro interface. The full announcement details are available on the [Aave blog](https://aave.com/blog/aave-v4-live-ethereum). Aave Pro provides users with a streamlined way to access V4's liquidity protocol features through a web-based interface.

A new audit contest is available on Sherlock's platform. Security researchers and auditors can participate in **Contest 1209** to identify vulnerabilities and earn rewards. - Contest accessible at [Sherlock platform](https://audits.sherlock.xyz/contests/1209) - Open for community participation - Part of ongoing security review process This follows previous contest activity, indicating continued focus on protocol security through community-driven auditing.