Aave launches V3 lending on Monad

• Aave deployed its V3 lending protocol on Monad with support for 12 digital assets, including the GHO stablecoin.
• The Monad Foundation committed US$15 million in incentives during the first year to support liquidity and user adoption.
• The deployment expands Aave's multichain lending network while testing demand for decentralised lending on Monad.

Aave, associated with Aave (CRYPTO:AAVE), launched its V3 lending protocol on Monad, introducing support for 12 digital assets including GHO, USDC, USDT0, Wrapped Ether (CRYPTO:WETH) and Coinbase Wrapped Bitcoin (CRYPTO:CBBTC).

The deployment expands Aave's multichain lending network and gives Monad users access to borrowing markets, the GHO stablecoin and liquidity incentives, while becoming the first Aave deployment to enable Chainlink (CRYPTO:LINK) Smart Value Recapture from launch.

The Monad Foundation committed US$15 million in incentives during the protocol's first 12 months and agreed to acquire and hold 10 million GHO for more than six months, while Aave DAO allocated an additional 500,000 GHO to encourage adoption.

Aave said the deployment is intended to strengthen liquidity on Monad, and following the announcement the Aave price was unchanged at the time of writing.

According to LlamaRisk, Monad had approximately US$359.5 million in total value locked as of June 8, with the risk assessment recommending conservative launch parameters because of the network's relatively short operating history.

The launch follows growing institutional interest in tokenised assets within decentralised finance, with Standard Chartered previously stating that tokenised assets could increase lending activity on Aave as the Monad ecosystem continues to expand.

At the time of reporting, Aave price was $86.10.