Aave brings V3 lending and GHO stablecoin to Monad
Aave has deployed its V3 lending protocol on Monad, adding a new lending venue to the layer-1 ecosystem with 12 assets at launch, including USDT0, USDC, GHO, USDe, WETH, cbBTC, wstETH, weETH, syrupUSDC and sUSDe. This is Aave’s first deployment with Chainlink Smart Value Recapture enabled from day one, so part of liquidation value can flow back to the protocol. The move expands Aave’s multichain network and gives Monad users access to established borrowing markets and GHO-based liquidity. Monad’s Ethereum-compatible environment should let existing Solidity contracts and tooling work with minimal changes. The launch is backed by incentives: Monad Foundation pledged $15 million over 12 months, plus a commitment to buy and hold 10 million GHO for over six months, while Aave DAO added 500,000 GHO in incentives. Risk reviewers backed cautious initial parameters because Monad is still early in its growth and liquidity remains concentrated in a few protocols.
