Aave

Aave has frozen rsETH markets across V3 and V4 following a Kelp DAO bridge exploit. Analysis confirms rsETH on Ethereum mainnet remains fully backed. **Key Actions Taken:** - rsETH markets frozen to prevent new deposits and borrowing - WETH reserves frozen across Ethereum, Arbitrum, Base, Mantle, and Linea - Exposure to the incident has been capped **Important Notes:** - Aave's contracts were not exploited - The issue stems from the rsETH bridge vulnerability - Team is reviewing borrows that occurred post-exploit Aave continues validating information and assessing potential resolutions. If bad debt accumulates, the protocol will explore options to offset any deficit.

**Aave V4 continues rapid growth trajectory** Supply, borrow, and credit line caps have been increased across multiple assets after reaching full capacity. This marks the latest in a series of cap raises since V4's launch. **Key milestones:** - Multiple assets hitting maximum capacity repeatedly - [LlamaRisk](https://twitter.com/LlamaRisk) proposing increases to meet demand - Caps scaling gradually under security-first approach The protocol launched with conservative limits by design. Risk managers evaluate performance before proposing increases, balancing growth with security as the system matures.

Aave has rolled out UI and UX improvements to Aave Pro on both mobile and web platforms. The update introduces **new reserve pages** that display: - Per-asset interest rate data - Supply and borrow caps - Top addresses These enhancements build on Aave Pro, the interface for Aave V4 that allows users to earn, borrow, swap, and monitor positions.

Aave Labs has introduced **Aave Checkpoint**, a new tool designed to enhance governance security and transparency. The tool performs three key functions: - Fetches onchain data from new proposals and payloads - Cross-references parameters against forum specifications - Runs automated security checks before execution Aave Checkpoint helps the community verify that governance proposals match their intended specifications before they go live, reducing the risk of errors or malicious code execution. This addition strengthens Aave's governance process by providing an extra layer of review for protocol changes. [Learn more about Aave Checkpoint](https://governance.aave.com/t/introducing-aave-checkpoint/24457)

**Fireblocks has integrated Aave into their new Earn feature**, enabling over 2,400 institutions on their platform to generate yield on stablecoin holdings. **Key Details:** - Enterprise custody platform Fireblocks now offers Aave-powered yield generation - Institutional clients can earn returns on idle stablecoin balances - Integration expands Aave's institutional reach significantly This follows Aave's recent partnership with Blockdaemon, where Aave became the exclusive provider for their Earn Stack. The Blockdaemon integration supports BTC, ETH, stablecoins, and includes access to Horizon for RWA-backed borrowing. Both integrations highlight growing institutional adoption of DeFi protocols with proven security track records.

**CowSwap experienced a front-end attack**, prompting immediate safety measures across integrated platforms. **Key developments:** - The attack targeted CowSwap's front-end interface only - Aave Protocol and Interface remain unaffected - CowSwap team disabled swap endpoints for all integrators as precaution - Aave Interface now routes swaps through ParaSwap to maintain service **What this means:** Users can continue swapping on Aave without interruption. The rerouting to ParaSwap ensures functionality while CowSwap addresses the security issue. This incident highlights the importance of having backup infrastructure in DeFi protocols.

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.

**Aave V4** has entered its **open security review phase** on Sherlock DeFi, marking a key milestone in the protocol's development. The review invites participation from: - Previous Aave auditors - Developers familiar with lending-pool mechanics - Security researchers interested in DeFi protocols This follows Aave Labs' September roadmap announcement, which outlined the final stages before V4's launch including public documentation, testnet deployment, and codebase release. The open review represents a **community-driven approach** to protocol security, allowing experienced auditors to contribute to one of DeFi's most significant upgrades.

**MetaMask's mUSD stablecoin** has been listed on Ethereum Core and Linea Build markets, expanding lending options for users. - Users can now **supply and borrow mUSD** on both platforms - This marks continued expansion for mUSD, the first stablecoin from a self-custodial wallet - Previously announced integration with Linea ecosystem for seamless on-ramps and swaps The listing provides new **DeFi lending opportunities** with MetaMask's native stablecoin across multiple networks.