GM, Aave community!
Aave Labs has continued to make steady progress on multiple protocol endeavors in line with its service provider scope, with Aave V4 development as the primary focus.
The below summary highlights developments in the Aave Protocol and reflects Aave Labs’ transparent and collaborative approach of building in public, welcoming community feedback, and fostering auditability through open-source principles.
April update:
- Continued Aave V4 development.
- Refined Horizon proposal and moved forward with the governance process.
- Continued hardening of Aave V3 on Aptos.
- Accelerated GHO codebase migration to Foundry.
- Continued supporting the GHO Multichain Strategy.
- Progressed Aave Interface V4 development.
- Finalized preparations for Umbrella activation.
- Supported ongoing integrations.
Aave V4 Updates
Aave Labs continues to drive Aave V4 forward at a rapid cadence, prioritizing the development of the new Liquidation Engine and the introduction of Reserve Factor and Dynamic Risk Configuration mechanisms, while progressing refinements to the Liquidity Hub and its Spokes.
This month, the team concentrated on the implementation of the Liquidation Engine V4, which introduces variable liquidation factors. Under this approach, only the collateral strictly necessary to restore a position’s health factor is liquidated, considerably limiting the impact to the borrower while maintaining protocol resilience.
In parallel, work on the Reserve Factor and Dynamic Risk Configurations resumed once their technical specifications were finalized. The latter will provide onchain, parameter‑driven risk management that simplifies the protocol adjustments to evolving market conditions.
Engagement with @Certora advanced into the formal verification phase. Together, the teams defined a comprehensive verification scope, prioritizing key security properties. In parallel, both teams assessed mitigation strategies for inflation attacks, considering the nuances of the V4 architecture.
What else are we working on?
Horizon’s RWA Instance
Following the successful Temp Check snapshot, Aave Labs advanced to the next stage of governance by publishing an ARFC that incorporates recent community feedback. The Horizon RWA instance, designed in alignment with governance priorities, extends the protocol into a permissioned environment, unlocking institutional real-world collateral, diversifying protocol fee streams, and strengthening GHO’s position as a settlement asset for future onchain finance.
Aave V3 on Aptos
Aave Labs concluded the multi-party security review of the Move codebase. Remediation work is already in progress, supported by the continuous fuzz-testing framework introduced earlier this year. During this month, the team supplied technical guidance and supporting documents for the @AptosFoundation ARFC. In addition, the liquidation bot is now feature-complete and going through the test phase. Lastly, a comprehensive documentation suite was finalized and has entered an internal review cycle ahead of public release.
GHO Migration to Foundry
In recent weeks, Aave Labs has progressed the migration of the gho-core repository from Hardhat to Foundry, aligning the codebase with aave-v3-origin and streamlining future GHO expansions to additional networks. In parallel, Aave Labs is evaluating automation strategies aimed at standardizing and accelerating future deployments.
GHO Multichain Strategy
Aave Labs continues providing technical support to @TokenLogic on the GHO CCIP Bridge and the GSM L2 implementations. Simultaneously, the team is collaborating with @kpk on the expansion into Gnosis and with @TokenLogic on the expansion into Sonic, while implementing a series of processes to facilitate consistent deployments across chains. Throughout these efforts, Aave Labs maintains close communication with @Chainlink_Labs to align the underlying infrastructure ahead of the release phase.
Interface
Aave Interface V4
Aave Interface V4 development is progressing as expected, introducing further enhancements to user-driven design controls and workflow navigation while refining interface components. The latest iteration enables the supply workflow, allowing users to supply assets to the protocol. In parallel, Aave Labs is also developing an onchain API that exposes all protocol positions, interactions, and functions, facilitating seamless integration for any client application. Additionally, the Aave Interface is being subject to rigorous measures to strengthen its security, acknowledging its growing relevance as an attack vector.
Aave Umbrella Activation
Completed testing of the final Umbrella deployment and its integration into the interface, in preparation for its upcoming activation. This effort adds to several weeks of focused development and comprehensive testing, bringing the feature seamlessly into production. Throughout this process, Aave Labs collaborated closely with @bgdlabs to maintain architectural alignment and uphold consistent behaviour in the new implementation.
Ongoing Integrations
Updates on the Aave Interface related to tokens and community incentive programs, such as the integration of the Borrow EURe Campaign, resolution of general bug fixes, and implementation of minor feature enhancements.
What’s coming next?
Our main focus for the coming month will be
- Progressing the development of Aave V4.
- Finalize the security effort associated with Aave V3 on Aptos.
- Continuing GHO codebase migration to Foundry.
- Supporting GHO Multichain Strategy.
- Executing Aave Umbrella integration into the Aave Interface.
Stay tuned for next month’s update.
Aave Labs