GM, Aave community!
Aave Labs has continued to make steady progress on the Aave Protocol V4 development in line with our service provider scope. Below is a summary of what has been done over the past month, as well as what is coming in the next 30 days.
January update:
- Continued Aave Protocol V4 development.
- Executed GHO CCIP v1.5.1 upgrade.
- Updated GHO Risk Stewards.
- Progressed preparations to expand GHO into Base.
- Made significant progress for Aave Protocol V3 on Aptos.
- Advanced Aave Interface V4.
- Finalized preparations to integrate Umbrella.
- Supported ongoing integrations.
Aave Protocol V4 Updates
Development on Aave Protocol V4 has been progressing consistently since June, with the main focus on implementing the Liquidity Hub and the Liquidity Premiums. Below you will find the details of the advancements made in the last month.
Liquidity Hub
Aave Labs concentrated efforts on finalizing the base implementation, with focus on a robust integration of the Base Borrow Fees and the Liquidity Premiums to build a reliable accounting system. Substantial progress was also made on completing the methods that facilitate seamless interactions between the Liquidity Hub and Spokes, crucial for the overall functionality and efficiency of the V4 architecture.
Liquidity Premiums
The Liquidity Premium algorithm and the associated accounting system have undergone rigorous testing and refinement, resulting in a more mature implementation. This month, emphasis was placed on consolidating the algorithm to make it stable and effective.
What else are we working on?
GHO CCIP v1.5.1 Upgrade
The Chainlink Cross-Chain Interoperability Protocol (CCIP) was upgraded to version 1.5.1 at the beginning of December, 2024, introducing a number of enhancements for cross-chain pool management. Aave Labs has collaborated with Chainlink, successfully executing the upgrade of the GHO pools on Ethereum and Arbitrum to CCIP v1.5.1.
GHO Risk Stewards Update
A maintenance proposal was implemented to update the Risk Steward contracts in Ethereum and Arbitrum. Resulting in an enhanced user experience for the Risk Council, while aligning the design of the Risk Stewards implementations throughout the Aave Protocol. The changes did not impact other parts of the GHO implementation.
GHO Expansion to Base
With the successful completion of the CCIP v1.5.1 upgrade, Aave Labs has finished all the necessary preparations to expand GHO to the Base network. The execution will be triggered once the governance process is concluded. This expansion marks an important milestone in the growth and adoption of GHO across multiple networks.
Aave Protocol V3 on Aptos
This was a pivotal month for the deployment of the Aave Protocol V3 on Aptos. The test suite was reinforced, achieving 100% test coverage on smart contracts and market configurations. After diligent coordination, Aave Labs successfully launched testnet immediately after the New Year. Additionally, the team laid the groundwork for a custom-built fuzzer which will enable sophisticated fuzzy testing to uncover edge cases and strengthen the overall resilience of the system. Efforts were also focused on preparing the codebase for upcoming security reviews, while continuing the work with security researchers on the codebase.
Interface
Aave Interface V4
Aave Labs has begun building the new Aave Interface V4, designed to seamlessly integrate with the anticipated iteration of the Aave Protocol. Considering that the current iteration of the Aave Interface will not be technically compatible with the Aave Protocol V4, work has started on creating the foundational components, layouts, and design elements for the new interface.
Umbrella
Aave Labs has progressed preparations to integrate Umbrella (new version of the Aave Safety Module) staking across the Aave Utilities SDK, the Aave Interface, and the Aave Interface helper contracts. The integration is ready to proceed smoothly once the governance process is complete.
Ongoing Integrations
Updates on the Aave Interface related to tokens and community incentive programs, such as the integration of the AUSD Merit campaign, resolution of general bug fixes (e.g. mobile views for new staking pages), and implementation of minor feature enhancements.
What’s coming next?
Our main focus for the coming month will be
- Progressing the development of Aave Protocol V4.
- Executing GHO expansion into Base.
- Executing the integration of Umbrella into the Aave Interface.
- Continuing fuzzer development and security review preparations associated with Aave Protocol V3 on Aptos.
Stay tuned for next month’s update.
Aave Labs