Aave Deploys V3 Lending Protocol And GHO Stablecoin On Monad Network

DeFi platform Aave has launched its V3 lending protocol on Monad, adding a new lending market to the layer-1 blockchain with 12 assets available at launch, including USDT0, USDC, Aave’s own GHO stablecoin, USDe, mUSD, AUSD, WETH, cbBTC, wstETH, weETH, syrupUSDC and sUSDe. The rollout also marks Aave’s first deployment featuring Chainlink Smart Value Recapture, which redirects part of the value generated from liquidations back into the protocol. Monad’s compatibility with Ethereum’s development tools allows existing Solidity contracts to work with little modification.

Monad Foundation Puts $15 Million Behind Adoption Push

The Monad Foundation has committed $15 million in incentives over the first year to help build liquidity, along with a pledge to hold 10 million GHO for at least six months. Aave DAO added a further 500,000 GHO to support early usage on the network.

Liquidity Growth Still An Open Question

Risk firm LlamaRisk noted that Monad, which launched in November 2025, held about $359.5 million in total value locked as of early June, with activity slowing after an initial burst. The firm backed the deployment but applied cautious starting parameters given the network’s limited history. The move comes as institutions, including Standard Chartered, look at bringing tokenized assets into DeFi lending platforms like Aave.