Greetings, Aave community!
Aave Labs has continued to make steady progress across multiple protocol initiatives in line with its service provider scope.
During August, recently launched deployments moved into their next phase of growth and maintenance, while work advanced across security, integrations, technical assessments, governance, and product development. The update below reflects Aave Labs’ transparent and collaborative approach to building in public.
August update:
- Published the AI assisted security approach of Aave V3 and Aave V4.
- Aave V4 surpassed $800M in deposits and reached a record high in active loans.
- Continued the activation of the Aave V4 Risk Stewards and executed three rounds of supply and borrow cap adjustments.
- Moved the Low Adoption Asset Deprecation into implementation and advanced planning for oracle deprecation across Aave V2 and V3.
- Continued supporting the Babylon integration.
- Supported the EtherFi Cash activation on Aave V4 on Optimism.
- Supported the PT oracle implementation and applied a configuration change to the Aave V3 Risk Steward.
- Advanced Stable Vaults and GHO, including the deployment of the Remote GHO Stability Module on Monad.
- Expanded early access to the Aave App and continued development across Aave Horizon, Aave Pro, and the Aave Interface.
Aave Protocol
Security remained a central focus throughout August. The team shared insights about the AI assisted hardening of Aave V3 and Aave V4, providing additional material for community review. The signer rotation for the Emergency Guardian also advanced through governance.
Aave V4
Aave V4 sustained its growth across Ethereum and Avalanche during August. Total deposits across both instances surpassed $800M, while active loans reached a record high.
As activity increased, the team executed supply and borrow cap adjustment rounds 12, 13, 14, and 15, supporting regular capacity updates across both deployments. The activation process for the Aave V4 Risk Stewards also progressed on both networks. The Risk Stewards are intended to support routine parameter adjustments within limits established by governance, extending the operating model already used for Aave V3 as Aave V4 grows.
Integration work advanced across several initiatives. The team announced support for Coinbase Tokenized Stocks on Base, with Aave included as the sole credit infrastructure in Coinbase’s announcement. The Babylon integration is undergoing a full security review, with ongoing collaboration with the Babylon team to identify and address potential issues ahead of market activation and support a successful launch. EtherFi Cash went live on Aave V4 on Optimism and reported more than 100,000 cardholders. We supported the activation by reviewing the deployment and initial parameters, and by actively engaging with the EtherFi team to address implementation questions.
The team also introduced the Config Engine for Aave V4 to the community and is coordinating an audit with Certora of the configuration and deployment engines. In parallel, configuration maintenance proceeded on the Global Dollar Hub as the deployment moved beyond its initial activation phase.
Aave V3
The asset deprecation proposed by @LlamaRisk moved into implementation during August. Aave Labs is working on the corresponding AIP, aligning expectations with the DAO ahead of the next governance step. The proposal covers the gradual deprecation of reserves with limited adoption. Planning also advanced for @LlamaRisk’s proposed oracle deprecation across Aave V2 and V3. Together, the initiatives support the DAO’s staged approach to maintaining legacy assets and infrastructure as the protocol evolves.
We also supported @LlamaRisk’s PT oracle implementation, beginning with PT-srUSDe-22OCT2026 on the Ethereum V3 Core instance. The team reviewed the code and the corresponding AIP, with the implementation intended to expand to additional assets over time. Additionally, in collaboration with @LlamaRisk, we applied a configuration change to the Aave V3 Risk Steward and will apply the corresponding change to the Aave V4 Risk Stewards.
Governance Proposals
Governance work during August combined proposals prepared by Aave Labs with technical review for other DAO Service Providers.
We created 1 AIP:
- AIP 510: Maintenance: Grant AL RETRY_ROLE on a.DI (Part 1).
The team also reviewed 6 AIPs created by DAO Service Providers:
- AIP 509: Remote GSM Launch: Monad.
- AIP 511: Risk Stewards Cooldown Reduction & Umbrella Pauser Role Reassignment.
- AIP 512: July 2026 Funding Update.
- AIP 513: Asset Listing: Pendle PT-AUSD Monad.
- AIP 514: Asset Listing: Pendle PT-USDG X Layer.
- AIP 515: Onboard PT-srUSDe-22OCT2026 to the LlamaRisk PT Risk Oracle.
At the beginning of the month, we supported the execution of the syrupUSDG listing, making the asset available in the Maple syrupUSDG Spoke through the Global Dollar Hub. The team’s review work also supported the broader governance pipeline alongside the team’s own submissions.
Technical Assessments
Technical assessment work progressed in support of upcoming listings and network expansion. The current queue includes assessments of USDC and PT-USDG on X Layer among other assets in the listing pipeline, alongside a preliminary network assessment of Arc ahead of Aave V4 deployment on the network.
What else are we working on?
Stable Vaults
The funding update for Stable Vaults was approved onchain through AIP 512, allocating 300,000 GHO, 100,000 USDC, and 100,000 USDT to support the workstream. With funding secured, the team remained in discussions with several firms on potential integrations, moving the focus toward adoption.
GHO
GHO work during August combined increased adoption with further technical expansion. The total value of staked GHO reached $14.4M, while Savings GHO (sGHO) passed the yearn.fi curation review with a score of 2.5 out of 5.0 and a Low Risk classification in the published report.
The Remote GHO Stability Module (GSM) was deployed on Monad during August. @TokenLogic implemented the AIP, while the team supported its deployment and review through AIP 509.
Aave App
Early access to the iOS app opened during August through the Ghost Passes referral program. Top referrers received access first, together with passes they could share, as described in the announcement. This phase gives the team a broader set of early user feedback ahead of launch. Throughout the month, the team evaluated that feedback and refined the experience.
Aave Horizon
The team shared an update on the Aave Horizon asset onboarding process, formalizing a shift from delegated decision making to full governance oversight of asset listings. New assets proposed for the market now advance through a business case, a risk assessment from @LlamaRisk, a technical assessment from the team, and a binding Snapshot vote before implementation. The change grants the DAO direct authority over the market’s collateral set as it expands beyond tokenized treasuries into new asset categories.
Aave Pro
Aave Pro focused on refining how users navigate assets and positions during August. The interface now includes Group by Market and Group by Hub views, giving users more ways to organize activity across the product. We implemented better handling of underlying yield for tokens such as wstETH, weETH, sUSDe and Pendle assets. We added support for the EtherFi instance to protocol statistics in Insights and continued expanding support for additional assets in Swaps across more chains.
The team is reworking the Aave Pro experience around user intent rather than protocol mechanics, replacing the combined Deposit/Borrow flow with two distinct paths. Earn supports simple yield deposits organized by Hub, with the option to later use a position as collateral. Borrow guides users to deposit collateral and then borrow, organized by Market.
Aave Interface
Gasless voting was implemented on the governance page during August. The implementation makes the voting flow available directly within the Aave Interface.
What’s coming next?
Our main focus for the coming month will be:
- Activate the Aave V4 Risk Stewards on Ethereum and Avalanche.
- Continue supporting the Babylon and Coinbase Tokenized Stocks integrations with Aave V4.
- Advance the Low Adoption Asset Deprecation and oracle deprecation through their next governance and implementation stages.
- Continue Stable Vaults integration discussions and support GHO growth.
- Refine the Aave App experience based on early user feedback.
- Introduce new Earn and Borrow flows in Aave Pro.
- Add light mode to Aave Pro.
- Add position swaps and leverage to Aave Pro.
Stay tuned for next month’s update.
Aave Labs