Aave's newly launched Monad market crossed $100 million in deposits on Saturday, roughly two days after the decentralized lending protocol deployed V3 on the network. The launch brought lending, borrowing, and Aave's GHO stablecoin to Monad for the first time, with support for 12 assets including USDT0, USDC, GHO, WETH, and Coinbase's cbBTC. Deposits had already topped $75 million within the first 24 hours. The rapid growth occurred despite Monad holding about $359.5 million in total value locked as of June 8, meaning the new Aave market attracted the equivalent of more than a quarter of the network's TVL in about two days, according to a risk assessment posted to Aave's governance forum.
Aave Monad Market Reaches $100 Million in Two Days
The market opened with support for 12 assets, including USDT0, USDC, GHO, WETH, and Coinbase's cbBTC. Deposits had already topped $75 million within the first 24 hours, showing a fast start for one of the largest lending deployments on the chain.
A risk assessment posted to Aave's governance forum said Monad held about $359.5 million in total value locked as of June 8. On that basis, the new Aave market attracted the equivalent of more than a quarter of the network's TVL in about two days.
For Monad, Aave adds a core DeFi primitive that can support leverage, collateral management, stablecoin liquidity, and institutional-style lending flows. For Aave, the deployment expands its multichain footprint into a high-throughput Layer 1 network.
Monad Foundation Commits $15 Million in Incentives Over 12 Months
Under the deployment proposal authored by TokenLogic in May, the Monad Foundation committed $15 million in incentives over the first 12 months. It also agreed to acquire and hold 10 million GHO for more than six months to seed the deployment.
The Aave DAO separately pledged another 500,000 GHO to support adoption of the stablecoin on Monad.
The next phase on Monad is expected to add Pendle PT assets and Fastlane's shMON liquid staking token, according to the governance proposal.
Monad Receives Aave V3.7 Deployment Instead of V4
Monad received Aave V3.7 rather than the protocol's newest V4 version. Aave V4 launched on Ethereum mainnet in late March with a new hub-and-spoke architecture, but the rollout has been controlled rather than immediate across all networks.
The governance proposal leaves it to the Monad Foundation to decide whether and when to migrate to V4.
Risk service provider LlamaRisk supported the Monad deployment with conservative initial parameters, citing the network's roughly seven months of operating history. The firm also noted that Monad activity had compressed after a strong start, with liquidity concentrated in established protocols such as Uniswap, Curve, and Morpho.
Monad is marketed as a high-throughput, EVM-compatible Layer 1 network built by former Jump Trading developers. It launched its mainnet and MON token on Nov. 24 of last year and claims 10,000 transactions per second with 800-millisecond finality.
Aave V4 Crosses $250 Million on Saturday
The Monad deployment extends Aave's multichain expansion after the protocol went live on OKX's X Layer in March. It also comes as Aave V4 crossed $250 million in deposits on Saturday, marking a new all-time high for that version of the protocol.
"This is a remarkable milestone for Aave," Aave Labs founder and CEO Stani Kulechov wrote on X. "Can't wait to see Aave to grow towards [$1 billion] with more crypto-backed loans and expanding to securities backed-lending."
In a statement on the Monad deployment, Kulechov said "the next generation of blockchain applications depends on fast execution and deep, reliable liquidity." Keone Hon, co-founder and general manager of the Monad Foundation, said Aave is a lending standard trusted by institutions and that the deployment brings Ethereum's core liquidity primitives to a faster chain.
FAQ
How much did Aave's Monad market deposits reach after the V3 launch?
Deposits on Aave's newly launched Monad market crossed $100 million on Saturday, roughly two days after the decentralized lending protocol deployed V3 on the network. Deposits had already topped $75 million within the first 24 hours.
What incentives did the Monad Foundation commit for the Aave deployment?
Under the deployment proposal authored by TokenLogic in May, the Monad Foundation committed $15 million in incentives over the first 12 months. It also agreed to acquire and hold 10 million GHO for more than six months to seed the deployment. The Aave DAO separately pledged another 500,000 GHO to support adoption of the stablecoin on Monad.
Why did Monad receive Aave V3.7 instead of V4?
Monad received Aave V3.7 rather than the protocol's newest V4 version. Aave V4 launched on Ethereum mainnet in late March, but the rollout has been controlled rather than immediate across all networks. The governance proposal leaves it to the Monad Foundation to decide whether and when to migrate to V4.
