Aave

Aave has successfully completed the technical recovery following the April 18 rsETH exploit. **WETH loan-to-value ratios have been restored to pre-incident levels** across all affected networks including Ethereum Core, Ethereum Prime, Arbitrum, Base, Mantle, and Linea. The recovery marks the end of a month-long coordinated effort dubbed "DeFi United" that involved multiple protocols including Lido, EtherFi, Ethena, LayerZero, and Compound. The initiative successfully restored rsETH's backing through a combination of: - Liquidation of the attacker's positions on Ethereum and Arbitrum - A recovery fund established by Aave service providers and ecosystem partners - Arbitrum DAO's approval to release frozen ETH (despite legal complications from unrelated creditors) - Contributions from major DeFi protocols All WETH operations have returned to normal functionality across affected V3 deployments. The incident, which originated from an exploit of the Kelp DAO rsETH bridge, required freezing rsETH markets and WETH reserves as a precautionary measure. For more details on the recovery plan: [Aave Governance Forum](https://governance.aave.com/t/arfc-rseth-incident-funding-update/24740)

Aave V3's Searcher Value Redistribution (SVR) integration has generated over $11 million for the DAO treasury since March 2025. This revenue would have otherwise been captured by third-party searchers through MEV extraction. **Key Points:** - SVR recaptures non-toxic liquidation MEV and redirects it to the protocol - The integration is currently live on Ethereum, Arbitrum, and Base - Plans are underway to integrate SVR with the upcoming Aave V4, which will further expand this revenue stream - The feature was adopted through a near-unanimous governance vote The SVR mechanism allows Aave to monetize liquidation opportunities that would typically be extracted by external searchers, creating a new sustainable revenue source for the protocol's treasury. [Read the full technical update](<https://governance.aave.com/t/v4-technical-maintenance-updates/24915/2>)

**Aave V4 Spokes now leverage Chainlink's Smart Value Recapture (SVR) price feeds** for eligible assets, marking a significant infrastructure upgrade. **Key Benefits:** - SVR routes oracle-related MEV from liquidations back to Aave DAO - Creates a reliable, sustainable revenue stream for the protocol - Built on Chainlink's battle-tested oracle infrastructure Chainlink SVR is designed to help DeFi protocols recapture non-toxic liquidation MEV that would otherwise be extracted by third parties. This integration allows Aave to monetize a previously untapped value stream while maintaining the security and reliability of Chainlink's proven oracle network.

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) Security researchers and community members are encouraged to review the updated guidelines.

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 on Sherlock, creating an always-on security channel with improved triage to handle high-severity reports urgently.

**rsETH bridging between mainnet and Layer 2s has resumed** following the completion of the first phase of the technical recovery plan. **Key Updates:** - First tranche of rsETH transferred into LayerZero OFT adapter - Users can now freely move rsETH between mainnet and L2s - Withdrawals to be enabled within 24 hours - Deposits and exchange rate updates coming within 48 hours **Recovery Timeline:** The initial recovery steps included burning the exploiter's rsETH on Arbitrum. Additional tranches from Aave's recovery guardian and Kelp will be sent over the next 2 weeks to fully refill the lockbox. Staking rewards accumulated during the pause period will be distributed to all rsETH holders once exchange rates update. [View transaction](https://etherscan.io/tx/0xd6b29a3abb883869e70c51c30f5259b0ed3e930cd6c8507377abaab00e692474)

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.