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.
May update:
- Continued Aave V4 development.
- Initiated the release phase of Horizon.
- Progressed preparations for Aptos release.
- Advanced gho-core migration to Foundry.
- Continued supporting the GHO Multichain Strategy.
- Proposed a collaboration with Uniswap to integrate CDP into Aave.
- Progressed Aave Interface V4 development.
- Moved to the final phase of Umbrella integration.
- Supported ongoing integrations.
Aave V4 Updates
Aave Labs has continued advancing the development of Aave V4 with a primary focus on refining its liquidation framework and risk management configuration. This month, engineering efforts progressed on the Liquidation Engine, introducing mechanisms for deficit accounting, which are important to ensure compatibility with the Umbrella module. These enhancements aim to make liquidations more precise and strengthen the protocol’s financial structure.
In parallel, progress continued on the Reserve Factor logic to enable the protocol to accrue fees not only from interest rates but also from the premium debt that accumulates over time. Simultaneously, the initial implementation of Dynamic Risk Configuration is close to being ready, introducing a mechanism for onchain, parameter-based risk management that can adapt to evolving market conditions.
Aave Labs also implemented Multicall functionality within the Aave V4 codebase, enabling users to bundle multiple actions into a single transaction. This addition increases gas efficiency and enhances composability. Finally, the test suite continued to be expanded with coverage across newly introduced components and edge case scenarios, laying the groundwork for formal verification reviews and audit processes.
What else are we working on?
Horizon’s RWA Instance
Following the passing of the ARFC Snapshot, Aave Labs initiated the launch process for Horizon. The codebase has been finalized and successfully audited by Certora. In parallel, the team is working with an external security researcher to reinforce the security posture ahead of deployment. Additionally, the Business Development team is actively engaging with institutional partners to facilitate their onboarding process into the Horizon instance. This effort marks a key step in extending the protocol into the RWA environment, aligned with governance priorities.
Aave V3 on Aptos
Following the successful ARFC Snapshot vote, Aave Labs finalized the security audits of the Move codebase and launched a dedicated security contest to further reinforce the robustness of the implementation. This initiative complements the ongoing fuzz testing campaign and multi-party review process, adding an additional layer of scrutiny ahead of deployment. Final preparations are now underway for mainnet release, currently targeted for June 17.
GHO Migration to Foundry
The migration of the gho-core repository from Hardhat to Foundry has progressed steadily and is now approaching finalization. This effort aligns the GHO development environment with broader protocol tooling and aims to support more efficient future expansion initiatives across supported networks.
GHO Multichain Strategy
Aave Labs continued supporting @TokenLogic throughout this month on the GSM L2 implementations. In parallel, collaboration progressed with @kpk on the Gnosis expansion and with @TokenLogic on the Sonic release. The team also made good progress on the GHO rollout on Avalanche. These efforts are guided by consistent deployment processes, with ongoing coordination with @Chainlink_Labs to align the infrastructure requirements ahead of release.
Uniswap CDP GHO Positions
Aave Labs is progressing an initiative to enable GHO-backed CDP (Collateralized Debt Position) support for Uniswap V4 LP positions. The proposed system would allow users to borrow GHO against their Uniswap V4 liquidity, offering a novel use case for both protocols. If adopted, this initiative could open a new revenue stream for the Aave DAO and contribute to the broader adoption of GHO. For more context, see the RFC on Uniswap governance outlining the approach, and the Aave DAO Temp Check, which invites community feedback
At this stage, Aave Labs is actively engaging with the Uniswap community to address feedback and inquiries, with the intention to move forward with the governance process in the short term.
Interface
Aave Interface V4
Aave Interface V4 development progressed steadily this month, with advancements across multiple layers of the application stack. Backend work included updates to the database and the implementation of a GraphQL interface. On the front end, the team focused on building design components for the core user workflows, particularly supply and withdraw. Design efforts also continued to prioritize simplicity and visibility, supporting the overall usability of the interface. In parallel, an onchain API is being developed to expose protocol positions and interactions, supporting broader composability.
Aave Umbrella Activation
The integration of the Umbrella module into the Aave Interface is entering its final phase. Following weeks of preparation and testing in collaboration with @bgdlabs , the ARFC Snapshot passed, marking a key governance milestone. Activation in the Interface is expected to occur in the near term, completing a significant update to the protocol’s safety infrastructure.
Ongoing Integrations
Updates on the Aave Interface related to tokens and community incentive programs in alignment with @ACI and @TokenLogic , such as the integration of the Base Campaign for GHO borrows, 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.
- Advancing the final phase of Aave V3 on Aptos mainnet release.
- Finalizing 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