Aave

Aave has announced a restructuring of its bug bounty programs to enhance security measures across the protocol. **Key Changes:** - Updated bounty structure and reward tiers - Modified scope and eligibility criteria - Enhanced reporting procedures for security researchers The restructure aims to strengthen the protocol's security framework and incentivize responsible disclosure of vulnerabilities. This follows a recent security review conducted by Trail of Bits in February 2026. Full details of the changes are available in the governance proposal: [ARFC: Aave Protocol Bug Bounty Programs Restructure](https://governance.aave.com/t/arfc-aave-protocol-bug-bounty-programs-restructure/24816) The community can review and provide feedback on the proposed changes through the governance forum.

Aave has revamped its bug bounty program with significantly higher rewards and streamlined processes. **Key Updates:** - Critical bug payout caps increased **5x** for Aave V4 and Core Aave V3 - Payouts now better aligned with risk profiles across different ecosystem components - Simplified review pathways for security researchers This follows Aave Labs' March proposal to launch a dedicated V4 bug bounty program on Sherlock, aimed at creating an always-on security reporting channel with improved triage to handle high-severity reports urgently.

**rsETH operations are resuming** after a successful technical recovery. The first tranche of rsETH has been transferred into the LayerZero OFT adapter, reopening bridging between mainnet and Layer 2 networks. **Key developments:** - Initial recovery steps completed, including burning exploiter's rsETH on Arbitrum - LayerZero OFT adapter being progressively refilled - Cross-chain bridging functionality restored The phased approach allows for careful monitoring as operations return to normal over the coming days.

A court has modified a restraining notice to allow Arbitrum DAO's onchain vote and transfer of frozen ETH to Aave LLC for rsETH recovery efforts. **Key developments:** - Plaintiff-judgment creditors served restraining notice on May 1 targeting ETH frozen after rsETH incident - Aave LLC filed emergency motion to vacate the notice - Court modified notice on May 8 to permit transfer while restraining notice attaches to Aave LLC - Amended Constitutional AIP maintains recovery intent approved by Arbitrum DAO - ETH remains directed toward rsETH recovery as legal proceedings continue **Background:** The frozen ETH stems from the April 18 Kelp DAO rsETH bridge exploit. Arbitrum DAO previously voted with strong support (190M+ ARB tokens) to release the funds to DeFi United, a cross-protocol recovery effort led by Aave service providers alongside partners including Lido, EtherFi, Ethena, and LayerZero. [Full proposal details](https://forum.arbitrum.foundation/t/constitutional-aip-approve-release-of-frozen-eth/30825/37?u=aavelabs)

**Aave Pro introduces a comprehensive markets feature** that consolidates critical protocol information into a single interface. **Key features include:** - Market data and analytics - Deposit and borrow asset tracking - Connected hubs overview - Market composition breakdown The new dashboard is now available for users to explore on Aave V4. This update follows Aave's recent security-focused expansion, which saw supply and borrow caps increased across multiple assets to handle growing deposit volumes. Aave Pro serves as the primary interface for V4, enabling users to earn, borrow, swap, and monitor positions through a unified platform.

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.

**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)