Aave Launches V3 Lending Protocol on Monad with GHO Stablecoin
Vexoda Newsroom
DeFi platform Aave has expanded its multichain lending network by launching V3 protocol on Monad, introducing support for 12 assets and Chainlink Smart Value Recapture. The deployment aims to boost li
Aave, a prominent decentralized finance (DeFi) platform, has deployed its V3 lending protocol on Monad, a layer-1 blockchain. This move brings support for 12 assets at launch, including USDT0, USDC, GHO stablecoin, and WETH among others.
The deployment is part of Aave’s broader strategy to expand its multichain ecosystem, providing Monad users with access to an established borrowing market alongside the newly introduced GHO stablecoin. Additionally, Chainlink Smart Value Recapture has been enabled from day one, allowing a portion of liquidation value to be redirected back into the protocol.
To support early adoption and liquidity, Aave’s governance documents indicate that the Monad Foundation committed $15 million in incentives for the first 12 months post-deployment. The foundation also agreed to retain 10 million GHO tokens over six months, while the Aave DAO pledged another 500,000 GHO tokens.
However, these initial incentives may not be enough if user activity declines after their expiration. According to a risk assessment by LlamaRisk, Monad’s mainnet launched in November 2025 and had about $359.5 million in total value locked as of June 8th, but early network usage has shown signs of compression.
This launch comes at a time when institutions are increasingly interested in integrating tokenized assets into DeFi lending markets. For instance, Standard Chartered highlighted the potential for deposits into Aave with tokenized assets, while Centrifuge is planning to bring various tokenized securities onto Monad’s platform.
The broader implications of this deployment suggest that Aave aims to strengthen its multichain presence and provide more robust liquidity solutions across different blockchain networks. Traders should monitor how user engagement evolves post-incentives as well as the integration of additional assets on Monad in the future.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.