Aave

The Aave DAO has deployed a new market through a collaborative effort involving multiple protocol contributors. **Key participants:** - [@bgdlabs](https://twitter.com/bgdlabs) handled the deployment - [@chaoslabs](https://twitter.com/chaoslabs) and [@LlamaRisk](https://twitter.com/LlamaRisk) completed risk analysis - [@token_logic](https://twitter.com/token_logic) provided additional support - [@chainlink](https://twitter.com/chainlink) will supply price feeds The deployment represents standard protocol expansion, with established risk assessment procedures and oracle infrastructure in place. Chainlink's price feeds will provide data for the new market's operations.

Aave Protocol is deploying to Mantle Network, an Ethereum Layer 2 scaling solution built as a ZK Validity Rollup. **Initial Asset List:** - WETH, WMNT - Stablecoins: USD, USDC, USDe, sUSDe, GHO - Bitcoin-wrapped: FBTC - Other: syrupUSDT, wrsETH This deployment follows Aave's recent expansion to MegaETH, continuing the protocol's multi-chain growth strategy. The move brings Aave's lending and borrowing capabilities to Mantle's ecosystem, which combines Ethereum compatibility with zero-knowledge rollup technology for improved scalability. The proposal is currently under governance review. [View full proposal](https://app.aave.com/governance/v3/proposal/?proposalId=446)

Mantle is preparing to deploy 8 million $MNT tokens to incentivize lending and borrowing activity on its network. The Aave DAO, operating through its Aave Liquidity Committee (ALC), will contribute 1.5 million GHO stablecoin to support GHO liquidity on Mantle. **Key Details:** - Total incentive package: ~$9.5M in combined tokens - Mantle's contribution: 8M $MNT - Aave's contribution: 1.5M GHO - Purpose: Drive lending/borrowing activity and GHO liquidity This partnership follows Mantle's previous collaboration with Nouns DAO, which received 5M MNT delegation in July 2025. The move signals Mantle's strategy of building cross-protocol partnerships to strengthen its DeFi ecosystem.

Aave Protocol has officially deployed on Mantle, an EVM-compatible Layer 2 network designed for institutional applications and real-world assets. **Key Details:** - Partnership facilitated by Bybit and led by Token Logic - Mantle offers low-cost transactions while maintaining Ethereum compatibility - Deployment targets institutional-grade applications and RWA integration The launch follows an announcement from December 2025 about the planned collaboration. Users can now access Aave's lending and borrowing services on Mantle's infrastructure. This expansion continues Aave's multi-chain strategy, bringing decentralized liquidity to networks focused on enterprise adoption and traditional asset tokenization.

Trail of Bits has published a security audit for Aave V4, marking another step toward the protocol's mainnet deployment in 2026. **Key Details:** - Full audit report available on [GitHub](https://github.com/trailofbits/publications/blob/master/reviews/2026-02-aave-v4-securityreview.pdf) - V4 was deployed to testnet after two years of development - The new architecture enables expansion beyond onchain collateral - Aave is nearing $1 trillion in total loans originated since launch The audit comes as Aave positions itself to onboard the next wave of DeFi users through V4, Horizon, and the Aave App. The protocol recently demonstrated its market influence when Plasma network attracted $6.6 billion in deposits within 48 hours of launch.

**Key Liquidation Metrics** Since launching in 2020, Aave has processed over 310,000 liquidations worth $4.65 billion across all networks. Liquidation activity typically spikes during sharp market downturns. **Network Distribution** - Ethereum accounts for 75% of total liquidation volume in USD terms - Non-Ethereum networks represent the majority when counting individual liquidation events **MEV Recapture Success** In March 2025, Aave integrated Chainlink's Smart Value Recapture (SVR) into its Ethereum market. By February 2026, the system: - Processed $675M across ~3,900 liquidations - Captured ~$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 contribute 10%+ of liquidated value despite smaller deposit share The disparity in debt repayments indicates different trading strategies between the two major crypto assets, with market participants showing greater appetite for taking short positions on Bitcoin compared to Ethereum.

Aave Protocol has evolved into a **yield benchmark** for both individual users and institutional protocols in DeFi. A new case study examines how **Cap Money** leverages Aave as a primary yield source and integrates its rates into their Credit Engine infrastructure. This development demonstrates Aave's growing role as foundational infrastructure for next-generation financial applications seeking: - Sustainable yield generation - Deep liquidity pools - Resilient protocol architecture The integration reflects broader adoption trends, with Maple assets on Aave reaching over $750M in under six months. [Read the full case study](https://aave.com)

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.