Aave

**USDG sees explosive growth on Aave V4** Global Dollar's USDG deposits on Aave V4 increased fivefold within a single week. The protocol responded by raising the supply cap from its previous limit to 20 million USDG. **Key details:** - Growth driven by recently launched incentive program for USDG suppliers - Supply cap adjustment allows protocol to meet rising user demand - Similar incentives also active for Frax Finance's frxUSD on the platform The rapid adoption follows Aave V4's recent milestone of crossing $50 million in total deposits. The protocol continues adjusting caps as it matures and user activity expands.

**Aave Labs' UK subsidiaries have received regulatory approval from the Financial Conduct Authority (FCA).** Push Labs Ltd. and Push Virtual Assets Ltd. (collectively "Push by Aave Labs") are now registered as cryptoasset exchange providers in the UK. The approval includes: - Registration as a cryptoasset exchange provider - Authorization under the Electronic Money Regulations 2011 (firm reference: 900984) - Permission to issue electronic money These regulatory permissions enable Push by Aave Labs to operate cryptoasset activities and payments infrastructure in the UK market. **The company plans to offer zero-fee stablecoin on/off-ramping services** as part of its strategy to onboard the next million users through regulated financial products. The FCA approval represents a significant milestone for Aave Labs' expansion into regulated financial services within the United Kingdom.

**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)

Aave Pro has integrated **frxUSD** as a reward token, allowing users to track and claim their rewards directly within the platform. **Key Features:** - Rewards distributed in frxUSD - Seamless tracking and claiming without leaving Aave Pro - Direct access through the platform interface Users can explore frxUSD on Aave Pro: [View frxUSD Asset](https://pro.aave.com/explore/asset/1/0xCAcd6fd266aF91b8AeD52aCCc382b4e165586E29) This integration streamlines the reward claiming process, eliminating the need for external platforms or additional steps.

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.