Aave

Aave has activated incentives for USDm on its MegaETH market. Ethena's USDe stablecoin is also now available on the platform. **Key Details:** - USDm incentives are live on the Aave MegaETH market - USDe by Ethena is available with caps filling rapidly - Previous USDe deployment saw ~$1B caps filled within hours on Aave Plasma markets The quick cap fills demonstrate strong demand for these stablecoin markets on Aave's infrastructure. [Learn more about Aave markets](https://app.aave.com/markets/)

LayerZero has committed to supporting the **DeFi United recovery fund** aimed at restoring rsETH's backing following the April 18 Kelp DAO bridge exploit. The recovery effort, led by Aave service providers, has secured multiple commitments from ecosystem partners including: - Lido Finance - Ether.fi - Ethena - Compound - LayerZero A governance proposal has been submitted to Arbitrum DAO requesting release of frozen ETH from the Security Council. Aave DAO has also proposed contributing 25,000 ETH to the recovery fund. **Current status**: rsETH reserves remain paused across Ethereum Core, Arbitrum, Base, Mantle, and Linea. WETH reserves on Ethereum Core V3 have been unfrozen, though LTV remains at 0. The final recovery plan and user instructions will be announced shortly as technical execution moves forward.

Frax Finance is joining efforts to restore rsETH's backing through a forthcoming DAO proposal. This follows similar support from EtherFi, which recently published their own proposal. **Key developments:** - Frax Finance will present collaboration details via DAO proposal - EtherFi previously contributed with their own DAO proposal - Multiple DeFi protocols coordinating on rsETH backing restoration The partnerships demonstrate growing coordination among major DeFi protocols to address liquidity challenges.

**Golem Project and Golem Foundation have contributed 1,000 ETH to the ongoing rsETH relief effort.** The contribution adds to the growing DeFi United initiative aimed at helping affected users. This follows previous support from Ethereum stewards Consensys and ethereumJoseph, who committed up to 30,000 ETH to the recovery effort. **Key points:** - Golem's 1,000 ETH donation supports rsETH recovery - Part of broader DeFi United collaborative effort - Aims to restore rsETH backing and normalize market conditions The coordinated response demonstrates cross-protocol cooperation within the DeFi ecosystem to address user needs during challenging situations.

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)