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.
July update:
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Reached feature complete state for V4 and entered internal review phase
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Hosted V4 demo with Service Providers at EthCC Week
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Progressed Horizon launch preparations
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Continued post-launch efforts on Aave V3 on Aptos, including CTF monitoring and a.DI R&D
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Enabled GHO as fee token on Base
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Collaborated with Uniswap Foundation on the CDP design
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Integrated v3.4 and launched new campaigns on Base
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Continued CoW integration and SDK development
Aave V4 Updates
Development of Aave V4 reached an important milestone this month, with the codebase now feature‑complete and undergoing final internal review. Current efforts are focused on gas profiling and refactor, and end‑to‑end checks before the prototype is shared with service providers and the broader community.
Formal verification activities also progressed, with @Certora concluding a preliminary analysis and preparing to launch the next phase of the campaign. Their manual review is expected to begin in August, while additional external researchers will join the ongoing security efforts in the coming weeks. In addition, Aave Labs is engaging with multiple top audit firms to conduct layered manual reviews, reinforcing the protocol’s security posture ahead of public release.
Aave Labs also hosted a V4 demo session during EthCC Week in Cannes, offering service providers an early walkthrough of the feature‑complete prototype. The session gathered initial feedback from participants including @TokenLogic , @LlamaRisk , @ChaosLabs , @ACI , and @kpk . Earlier in the month, a separate in‑depth technical workshop had been held with @bgdlabs to align on architectural priorities.
In parallel, a dedicated internal devnet featuring multiple Spokes is now live and running, enabling full testing of the modular workflows that underpin the V4 architecture. A public testnet deployment of Aave V4 with an initial set of Spokes is planned for the upcoming month, marking the next step in preparing for broader community and service provider testing.
What else are we working on?
Horizon’s RWA Instance
Horizon moved closer to launch throughout July, as Aave Labs advanced discussions with multiple RWA issuers and finalized integration requirements. In collaboration with @LlamaRisk , the team began defining launch parameters to support real-world asset integration and align with the broader growth strategy alongside @TokenLogic . Meanwhile, implementation of the oracle infrastructure continued in close coordination with @Chainlink_Labs . Internal testing and deployment preparations are now in their final stages, laying the groundwork for mainnet deployment in the upcoming weeks.
Aave V3 on Aptos
The Aave V3 deployment on Aptos continued its post-launch validation phase, with the Capture the Flag (CTF) program still active. The CTF program remains active as Aave Labs monitors outcomes. Additionally, the team has been addressing issues identified through the Cantina security contest, and finalized interface-level bug fixes to improve user experience. Monitoring infrastructure was completed for testnet and is planned to be rolled out to mainnet following the CTF. Research and development also began on the a.DI implementation, and an initial technical assessment of cross-chain messaging layers was conducted. Based on these findings, a preliminary implementation of the preferred architecture is now underway.
GHO Multichain Strategy
Work continued on expanding GHO across networks, with Aave Labs collaborating with @Chainlink_Labs to finalize support for GHO as a fee token on Avalanche. Likewise, GHO was enabled as a fee token in the Aave Interface for Base, allowing users to cover CCIP-related costs directly with GHO. Meanwhile, the deployment on Gnosis, led by @kpk , is progressing through preparations to launch AIP. In parallel, @TokenLogic advanced the GHO GSM and the GHO CCIP Bridge implementations, which has already undergone review by Aave Labs and is currently receiving minor refinements. These coordinated efforts reflect steady momentum in expanding GHO’s utility and presence across the multichain ecosystem.
Uniswap CDP GHO Positions
Aave Labs has continued engaging with the Uniswap community to refine the proposed integration of GHO-backed CDP positions using Uniswap V4 liquidity. This month, Aave Labs met with the Uniswap Foundation and delegates to review progress and gather input on the design. A key focus was the analysis of tax mechanics within the Uniswap protocol, in order to reflect these in the updated proposal. Based on this collaboration, Aave Labs is preparing to publish a revised version of the proposal on the Uniswap governance forum in the coming weeks, aiming to reach broad alignment before entering the voting phase.
Interface
Aave Software Development Kit (SDK)
Work progressed on the V3 and V4 SDKs to better support external developers and client applications. These SDKs are designed to streamline access to protocol data and enable more seamless integration with third-party tools, laying the groundwork for broader adoption and a more composable frontend ecosystem.
CoW Switch Integration
Progress continued on the CoW Swap integration within the Aave Interface, with improvements across infrastructure, monitoring, and user experience. Support for swaps on Avalanche and Polygon is now fully enabled, with internal analytics confirming notable usage on both networks. Price feed integration was enhanced by adopting Family’s USD pricing service as the primary source, with CoW’s oracle retained as a fallback. Monitoring was strengthened with new metrics and client-side error tracking for improved observability. A suite of UX refinements, shaped by feedback from CoW and Aave Labs teams, was also deployed, and work has begun on implementing automated testing to safeguard stability going forward.
Ongoing Integrations
Aave Labs integrated the Aave v3.4 release into the Aave Interface and added ParaSwap support for the Sonic market. In parallel, incentive campaigns for cbETH, wstETH, and wETH were launched on Base to encourage broader adoption. Additional updates included general bug fixes and minor feature enhancements, in alignment with ongoing efforts alongside @ACI and @TokenLogic .
What’s coming next?
Our main focus for the coming month will be
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Advancing V4 security process plans
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Finalizing Horizon launch parameters and executing deployment
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Concluding the CTF phase on Aptos and outlining next steps
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Continuing SDK, Interface, and CoW integration improvements
Stay tuned for next month’s update.
Aave Labs