Aave

Aave has achieved a significant milestone by becoming the first decentralized lending protocol to exceed **$1 billion in Real-World Assets (RWAs)** deposited on its platform. This achievement comes shortly after Aave's expansion to Mantle Network in collaboration with Bybit, which saw rapid adoption: - Over **$350 million in deposits** accumulated within just one week of launch - The protocol continues its growth trajectory toward **$1 trillion in total loans** originated since inception The $1 billion RWA threshold represents a major step in bridging traditional finance with decentralized lending, demonstrating increasing institutional and retail confidence in on-chain credit markets.

Aave V4 has published its second security audit, conducted by Sherlock Protocol. The audit report is now available on GitHub. This follows a previous security review by Trail of Bits published earlier in February. Both audits are part of Aave's security-first approach as V4 moves toward mainnet launch. **Key Context:** - Aave V4 introduces a new architecture that expands beyond onchain collateral - The protocol was deployed on testnet after two years of development - Mainnet launch is planned for 2026 - Aave is approaching $1 trillion in total loans originated since launch [View the Sherlock audit report](https://github.com/sherlock-protocol/sherlock-reports/blob/main/audits/2026.02.05%20-%20Final%20-%20Aave%20Labs%20Collaborative%20Audit%20Report%201770295450.pdf)

The Mantle market on Aave Protocol has activated its incentive program for users. **Available Assets:** - USDC - USDT - USDe - WETH - GHO Users can now supply these assets to the Mantle market and begin earning rewards. This follows the previously announced allocation of 8 million MNT from Mantle and 1.5 million GHO from the Aave DAO through the Aave Liquidity Committee to support lending, borrowing, and GHO liquidity on the network. The incentive program aims to bootstrap activity on the new market deployment.

Aave Labs has introduced the **Aave Will Win Framework**, a governance proposal that would redirect all product revenue to the Aave DAO treasury under a token-centric model. **Key Revenue Sources:** - Aave.com platform - Aave mobile app - Aave Card - Aave Pro - Aave Kit - Aave Horizon The proposal includes funding for Aave Labs' development and growth, plus establishing a foundation to govern and protect the Aave brand. If approved, this would introduce several new revenue streams to the DAO. Aave Labs positions this as a strategic move to establish Aave as core global financial infrastructure over the next decade. [Read the full proposal](https://governance.aave.com/t/temp-check-aave-will-win-framework/24055)

The Aave DAO has introduced a proposal to ratify **Aave V4** as its strategic direction, focusing on two key revenue streams: - **Product layer**: Enhanced revenue generation through improved user-facing features - **Protocol layer**: New monetization capabilities built into V4 that capture more value for the protocol The proposal outlines V4's technical improvements and revenue mechanisms designed to strengthen the protocol's economic model. Additionally, the proposal requests DAO funding for Aave Labs' continued development and growth initiatives. It also introduces plans for a future foundation to govern and protect the Aave brand. The team positions this as a **token-centric vision** aimed at ensuring Aave's competitive position over the next decade.

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.

**Aave has processed over $3.3 billion in liquidations** since launch to protect its lending protocol from bad debt. The DeFi protocol published a detailed blog post introducing **V4's new liquidation engine** and explaining improvements over the current V3 system. - Liquidations serve as a critical safety mechanism for lending markets - V4 aims to enhance the liquidation process with new technical improvements - The upgrade represents Aave's continued focus on protocol security Read the full technical breakdown: [Aave V4 Liquidations Blog](https://aave.com/blog/aave-v4-liquidations?utm_source=x&utm_medium=post&utm_campaign=liquidations)

**Aave V4 transforms DeFi lending** with a revolutionary architecture that unifies liquidity across markets. **Key Innovation: Hubs and Spokes** - Hubs store liquidity pools - Spokes implement custom lending rules and market logic - Multiple markets can draw from the same liquidity source **Benefits for Users and Builders:** - Enhanced capital efficiency across all markets - Specialized markets can access deep liquidity from day one - Custom lending parameters without liquidity fragmentation **Real-World Applications:** - Pendle markets accepting multiple PTs as collateral - Uniswap LP-focused lending markets - Shared ETH liquidity across different use cases **Strategic Impact:** V4 positions Aave as DeFi's operating system, enabling previously unviable markets while maintaining security and efficiency. This architecture supports the migration of global finance onchain by serving specialized needs without sacrificing liquidity depth. [Read the full unified liquidity thesis](https://aave.com/blog/aave-v4-unified-liquidity-thesis)