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.
June update:
- Continued Aave V4 development.
- Entered Horizon release phase.
- Released Aave V3 on Aptos.
- Finalized gho-core migration to Foundry to align to Origin structure.
- Continued supporting the GHO Multichain Strategy.
- Progressed Aave Interface V4 development.
- Completed Umbrella integration.
- Supported ongoing integrations.
Aave V4 Updates
Aave Labs continued advancing Aave V4 throughout this month, highlighting the completion of the implementation of Reserve Factor mechanics and the Dynamic Risk Configuration module.
The Reserve Factor framework directs a portion of the base borrow interest and the premium debt into the treasury, reinforcing long‑term protocol’s sustainability. Dynamic Risk Configuration transitions the system away from static governance-defined parameters, replacing them with onchain mechanisms that can be fine tuned to adapt to market dynamics. This approach reduces operational overhead while maintaining robust and responsive risk controls. Progress also continued on the Liquidation Framework, where Parallel Liquidations will enable multiple collateral to be processed atomically, minimizing slippage and gas costs.
At the architectural level, Aave Labs finalized the Multi‑Hub design, a modular approach that allows the protocol to support heterogeneous liquidity hubs while preserving composability, broadening the range of strategies available for collateral allocation and borrowing use cases. Multiple configurations were benchmarked for gas efficiency and risk isolation, establishing a clear path to production.
Aave Labs also delivered the first iteration of the Position Manager contract. This new utility allows users to delegate execution rights to another address in a secure and permissioned way. As a result, trusted third parties can perform actions such as repaying, withdrawing, or managing collateral on behalf of users. This mechanism introduces a flexible interface for integrations and automation, unlocking more advanced interactions within the ecosystem.
What else are we working on?
Horizon’s RWA Instance
Horizon has officially entered its final readiness phase now that external security audits are complete. With this milestone achieved, Horizon is now focused on launch preparations. Throughout this month, the Horizon team worked closely with a select group of RWA issuers and institutional partners to support onboarding and ecosystem readiness. These efforts have brought Horizon significantly closer to enabling RWAs to be used as collateral within the Aave ecosystem.
Aave V3 on Aptos
The Aave V3 deployment on Aptos reached a major milestone this month, moving from internal development to public release. The final implementation was published to the public repository following comprehensive internal reviews and the completion of a security contest coordinated with Cantina.
Subsequently, an AIP to deploy the protocol on Aptos passed, and the contracts were launched on mainnet in “Capture the Flag” mode. Liquidity was supplied, and a six-week security campaign was initiated in collaboration with Cantina to invite researchers to test the system under live conditions. This phase underscores Aave Labs’ commitment to transparency, open collaboration, and proactive security ahead of full production readiness.
GHO Origin GitHub Repository
Aave Labs completed the migration of the gho‑core repository from Hardhat to Foundry framework, and the updated codebase is now live on gho‑core‑origin. This transition adopts the latest Aave Protocol code and dependencies under the aave‑v3-origin structure, ensuring consistency across DAO components and improving maintainability. In addition to simplifying audits, this migration opens the door for new contributors by streamlining the developer experience. Aave Labs is already working closely with @TokenLogic, who is preparing the first external contribution to modify the GSM for supporting remote deployments.
GHO Multichain Strategy
As part of the broader initiative to scale GHO across networks, GHO was expanded into Avalanche after the AIP passed, unlocking bridging capabilities to the network. GHO can now be used to pay CCIP fees and has been listed as a borrowable asset in the Aave V3 deployment on Avalanche, further increasing its accessibility. In parallel, @TokenLogic advanced the GHO CCIP Bridge implementation, which is currently under review by Aave Labs. Separately, the deployment of GHO on Gnosis, led by @kpk, has almost completed review and is queued for execution. These coordinated efforts represent continued progress toward expanding GHO’s utility and presence across the multichain ecosystem.
Uniswap CDP GHO Positions
Aave Labs has continued engaging with the Uniswap community to incorporate feedback on the proposed integration of GHO-backed CDP positions using Uniswap V4 liquidity. Discussions have focused on refining the design and addressing concerns raised by the community to align with broader protocol priorities. These updates are intended to increase support and improve clarity ahead of the upcoming governance phase. The goal remains to reach a robust and mutually supported outcome once the proposal moves forward to voting.
Interface
Aave Interface V4
Team efforts focused on infrastructure and performance enhancements across the Aave Frontend and Backend. All transaction handling and indexing pipelines were finalized, including the complete redesign and deployment of the SQL layer. These improvements pave the way for ongoing work on the indexer refactor, aimed at significantly increasing data retrieval speed and optimizing resource usage. Once completed, focus will switch to refactoring the query logic to facilitate execution paths and improve maintainability. Together, these developments enhance the robustness and responsiveness of the Aave Interface, supporting a smoother user experience.
Aave Umbrella Activation
Umbrella has been successfully activated and is now fully integrated into the Aave Interface. This milestone concludes a multi-phase initiative involving coordination with @bgdlabs and extensive testing efforts. The integration brings the updated safety module infrastructure into production, enabling enhanced risk mitigation mechanisms.
CoW Switch Integration
The CoW Swap widget has been integrated into the Aave Interface, enabling seamless token swaps functionality, previously known as Switch. This integration leverages CoW’s Intent-based execution model, where users specify desired outcomes rather than exact trade paths, allowing solvers to compete to provide the most efficient execution (see CoW Protocol). The integration is performing smoothly and continues to evolve, with recent improvements focused on enabling custom token history and refining the user experience. Work is also ongoing to incorporate USD price to expand support to additional chains. In parallel, a proof of concept for limit orders is being developed, marking a first step toward introducing more advanced swap functionalities within the Aave Interface.
Ongoing Integrations
Updates on the Aave Interface related to tokens and community incentive programs in alignment with @ACI and @TokenLogic , 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 and the new Aave Interface.
- Supporting Aave V3 on Aptos post release.
- Supporting GHO Multichain Strategy.
Stay tuned for next month’s update.
Aave Labs