Aave launches V3 lending and GHO on Monad

Aave deployed its V3 lending protocol on the Monad layer-1 blockchain on Thursday, opening markets that support 12 assets at launch. The initial asset list includes USDT0, USDC, GHO, USDe, mUSD, AUSD, WETH, cbBTC, wstETH, weETH, syrupUSDC and sUSDe.

Chainlink Smart Value Recapture is active from launch. The mechanism redirects a portion of value recovered in liquidations back to the Aave protocol.

Aave’s governance proposal states Monad is compatible with the Ethereum application environment, allowing existing Solidity contracts and Ethereum tooling to run with minimal changes.

The Monad Foundation committed $15 million in incentives for the first 12 months after activation and agreed to acquire and hold 10 million GHO for more than six months. Aave DAO committed an additional 500,000 GHO to support adoption on Monad.

Risk data from LlamaRisk shows Monad’s mainnet launched on Nov. 24, 2025, and reported about $359.5 million in total value locked as of June 8. LlamaRisk supported the Aave deployment with conservative initial parameters because of the network’s short operating history.

Centrifuge has announced plans to bring tokenized Treasurys, private credit and AAA-rated collateralized loan obligations to Monad for lending and secondary-market activity. Centrifuge has not specified whether those assets will be integrated into Aave.

Aave’s deposit base reached about $75 billion at its October 2025 peak. The protocol team and the Monad Foundation will provide liquidity incentives to seed markets on Monad.

The launch adds an on-chain lending venue on Monad and gives developers immediate access to an established lending market and native GHO liquidity, with on-chain liquidation value capture enabled from day one.