Aave

**Golem Project and Golem Foundation have donated 1,000 ETH** to support the ongoing rsETH relief initiative. - The contribution follows similar efforts from other DeFi protocols, including EtherFi, which recently submitted a proposal to their DAO - The relief effort aims to restore rsETH's backing - Multiple protocols are collaborating to assist affected users The coordinated response demonstrates growing solidarity within the DeFi ecosystem during crisis situations.

**Recovery Effort Expands** Ethena has joined the collaborative effort to restore backing for rsETH following the April 18 Kelp DAO bridge exploit. The protocol now has multiple commitments from ecosystem partners including: - Lido Finance (proposal submitted to DAO) - EtherFi (proposal submitted to DAO) - Ethena (latest contributor) **Current Status** - rsETH reserves paused across Ethereum Core, Arbitrum, Base, Mantle, and Linea - WETH reserves on Ethereum Core V3 unfrozen; users can supply again - WETH LTV remains at 0 - rsETH on Ethereum mainnet confirmed fully backed **Background** The incident stemmed from an exploit of Kelp DAO's rsETH bridge. Aave service providers immediately froze affected markets to prevent new deposits and borrowing. Analysis shows potential bad debt scenarios, with recovery plans now in progress. Aave emphasizes that its contracts were not exploited - the issue originated with rsETH's bridge infrastructure. Full incident report: [governance.aave.com](https://governance.aave.com/t/rseth-incident-report-april-20-2026/24580)

**Aave V4 continues rapid growth trajectory** Multiple assets on Aave V4 have reached full capacity, prompting risk managers to raise supply, borrow, and credit line caps. @LlamaRisk proposed the increases to accommodate surging demand. **Key milestones:** - V4 crossed $20M in deposits - Multiple rounds of cap increases since launch - Security-first approach: caps start conservative and scale gradually - Runs on Chainlink oracle infrastructure securing tens of billions on V3 The protocol follows a deliberate growth strategy - deposit caps begin conservatively, then risk managers evaluate and propose increases as capacity fills. This measured approach balances user demand with protocol security during the maturation phase. Aave Pro interface available at [pro.aave.com](https://pro.aave.com)

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 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)

**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)