Aave

**New Collateral Option Available** stcUSD from CapApp has been added as an accepted collateral type on Aave's MegaETH market. **Borrowing Options** Users can now: - Deposit stcUSD as collateral - Borrow USDm against their stcUSD holdings - Borrow USDT0 against their stcUSD holdings This integration expands borrowing flexibility for stcUSD holders within the Aave ecosystem. [Access stcUSD on Aave](https://app.aave.com/reserve-overview/?underlyingAsset=0x88887be419578051ff9f4eb6c858a951921d8888&marketName=proto_megaeth_v3)

**Aave V4 is approaching $250 million in total deposits**, marking significant growth for the lending protocol's latest version. In response to increasing demand, **supply and borrow caps have been raised for the seventh time** across multiple assets on the platform. This milestone follows a pattern of rapid expansion: - Active borrows surpassed $50M in June, up 140% month-over-month - Gold-backed loans using Tether Gold reached all-time highs - USDG deposits grew 5x in a single week in May The repeated cap increases demonstrate strong user adoption and the protocol's ability to scale with demand. Users can earn incentives by supplying assets like frxUSD and USDG to the Main market. [Learn more about Aave V4](https://aave.com)

Aave Labs has deployed a new market on behalf of Aave DAO, marking another expansion of the protocol's lending infrastructure. **Key Details:** - Risk analysis conducted by [LlamaRisk](https://twitter.com/LlamaRisk) - Additional support provided by [Token Logic](https://twitter.com/Token_Logic) - [Chainlink](https://twitter.com/chainlink) will supply price feeds for the market This deployment follows a similar pattern to a previous market launch in March, which was handled by BGD Labs with risk analysis from Chaos Labs and LlamaRisk. The consistent involvement of specialized risk analysts and Chainlink's oracle infrastructure demonstrates Aave's methodical approach to market expansion. The new market adds to Aave Protocol's ecosystem of decentralized lending and borrowing options.

Aave governance has put forward a proposal to deploy the Aave Protocol on Monad, a high-performance EVM blockchain designed for scalability. **Initial Asset List:** - Stablecoins: USDT0, USDC, GHO, USDe, mUSD, AUSD - ETH variants: WETH, wstETH, weETH - Bitcoin: cbBTC - Other assets: syrupUSDC, sUSDe The deployment would expand Aave's reach to Monad's infrastructure, which aims to deliver improved transaction throughput while maintaining EVM compatibility. This follows recent bridge integrations that enabled USD1, wstETH, and LBTC transfers to Monad via Interport, secured by Chainlink CCIP. The proposal is currently under community discussion in Aave's governance forum. [View full proposal](https://governance.aave.com/t/arfc-deploy-aave-protocol-on-monad/24943)

Aave has released a detailed report on rebuilding securities finance within its V4 protocol. The announcement follows recent security audits of V4's Tokenization Spoke by ChainSecurity. The Tokenization Spoke is an **ERC-4626 compliant vault** that converts Liquidity Hub deposits into fungible ERC-20 share tokens, providing liquidity providers with claims on underlying assets. **Key developments:** - New securities finance framework for Aave V4 - Integration with tokenized liquidity infrastructure - Enhanced liquidity provider functionality Full details: [Rebuilding Securities Finance V4](https://aave.com/blog/rebuilding-securities-finance-v4)

Aave V4 eliminates the traditional multi-layered lending infrastructure that includes custodians, lending agents, tri-party managers, prime brokers, and clearing houses. **Key changes:** - Removes intermediary fees at each layer - Eliminates settlement delays - Increases transparency by removing information silos - Consolidates the entire stack into a single architecture The protocol continues to use Chainlink oracle infrastructure, which currently secures tens of billions of dollars on V3.

Aave V4 is designed to bring securities finance infrastructure onchain. The protocol aims to provide the market structures needed for this multi-trillion dollar Wall Street sector to operate in decentralized finance. **Key Points:** - Securities finance represents a massive but little-known market outside traditional finance - V4 features new architecture to support diverse assets, market structures, and risk profiles - Built on two years of research and development - Uses Chainlink oracle infrastructure that currently secures tens of billions on Aave V3 The upgrade positions Aave to bridge traditional securities finance operations with blockchain technology.

**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)