Aave

**Key Liquidation Metrics** - Since 2020, Aave has processed over 310,000 liquidations worth $4.65 billion across all networks - Ethereum accounts for 75% of total liquidation volume in USD, but non-Ethereum networks handle the majority of liquidation events by count - Liquidations typically spike during sharp market downturns **MEV Recapture Success** In March 2025, Aave integrated Chainlink's Smart Value Recapture (SVR) into its Ethereum market. By February 2026: - Processed $675M across ~3,900 liquidations - Captured approximately $16M in MEV for the Aave DAO - Achieved a 73% non-toxic MEV recapture rate This integration allows the protocol to reclaim value from liquidation-related MEV that would otherwise go to external actors. [Read the full analysis](https://aave.com/blog/historical-liquidations)

Recent liquidation data shows stablecoins account for over 90% of debt repayments in DeFi protocols. A notable pattern emerges: ETH-related debt repayments are nearly three times lower than BTC-related ones. **Key findings:** - Stablecoins dominate liquidation repayments at 90%+ - BTC borrowing significantly exceeds ETH borrowing - Data suggests DeFi users prefer shorting BTC over ETH - ETH and BTC assets remain primary collateral during deleveraging - Long-tail assets represent 10%+ of liquidated value despite smaller deposit share The disparity in debt repayments indicates different trading strategies between the two major crypto assets, with users showing greater inclination to take short positions on Bitcoin through borrowing mechanisms.

Aave has evolved beyond a lending protocol to become a **yield benchmark** for the DeFi ecosystem. A new case study examines how Cap Money leverages Aave as a foundational yield source and integrates its rates into their Credit Engine. This development highlights Aave's growing role as **infrastructure for financial applications**. The protocol now provides: - Sustainable yield generation for protocols building on top - Standardized rate benchmarks for credit systems - Reliable liquidity infrastructure for next-generation apps The timing aligns with Maple's rapid growth on Aave, which scaled to over $750M in assets within six months, demonstrating strong demand for institutional-grade DeFi yields.

**Rabby Mobile now supports Aave Protocol**, enabling users to borrow and earn yield directly from their mobile devices. - Users can access Aave's lending network with simplified mobile interface - Integration follows Aave's consumer-focused mobile app announcement from January - Part of broader embedded DeFi trend that gained momentum in 2025 Rabby Mobile also supports other lending protocols including Spark and Venus, allowing users to switch between platforms seamlessly. This integration makes DeFi lending more accessible to mobile users without requiring separate applications.

Aave has released a detailed case study examining stablecoin infrastructure. The analysis explores the technical and operational frameworks that support stablecoin systems within decentralized finance. **Key Points:** - Case study focuses on infrastructure requirements for stablecoins - Published on Aave's official blog - Provides technical insights into stablecoin operations Read the full case study: [Stablecoin Infrastructure](https://aave.com/blog/stablecoin-infrastructure) This follows Aave's recent publication on historical liquidations, continuing their series of in-depth protocol analyses.

**Aave has become the primary growth platform for emerging stablecoins**, with newer tokens depositing larger percentages of their supply on the protocol. **Key findings:** - Global stablecoin supply surpassed $300 billion in 2025 - RLUSD grew from $250M to $1.3B after Aave integration - $800M of RLUSD deposited on Aave (nearly 2/3 of total supply) - PayPal's PYUSD also saw significant expansion post-Aave listing **Usage patterns:** - $13B in stablecoins borrowed against $20B in deposits - Stablecoins represent 60% of all borrowing despite being only 1/3 of deposits - Primary use case: borrowing against crypto collateral The data demonstrates that **Aave has established itself as essential infrastructure** for stablecoin distribution and adoption in the crypto ecosystem.

PayPal's stablecoin PYUSD reached **$400 million in deposits** on Aave V3 Core Ethereum, following its integration as collateral in October 2025. The growth was driven by: - Onboarding as accepted collateral on Aave V3 - Targeted supply incentives for depositors The milestone demonstrates significant adoption of PYUSD within DeFi lending protocols since its integration just a few months ago.

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.