AL Development Update | October 2025

Greetings, 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.

October update:

  • Progressed Aave V4: we will soon make the codebase and technical docs public. We have started biweekly Office Hours, advanced public audits and formal verification.

  • Advanced Interface: implemented V4 core flows in staging, improved reliability and accessibility, expanded end‑to‑end tests, and aligned the SDK/API/Docs to V4.

  • Prepared integrations: readied v3.6 for the Aave Interface, added the Ink market, enabled limit orders on Ethereum and Arbitrum with incentives, and shipped UX updates (Favorites selector and grouped categories).

  • Announced Aave V3 on Aptos: completed GHO reviews, initiated external audits, prepared governance submissions, scoped incentives campaigns, and planned staged market upgrades.

  • Expanded GHO Multichain: completed CCIP Bridge remediation and reviews, finalized implementation, and set it production‑ready.

Aave V4 Updates

Aave Labs kicked off the Aave V4 Office Hours on October 8 and has hosted two sessions to date; topics included: program status and timelines; Umbrella and deficit accounting; initial V4 topology (hubs, spokes, credit lines); rates, Risk Premium, and fairness across credit lines; the reinvestment feature; hubs/spokes, isolation, and yield diversification; UX for shared borrow liquidity; Dynamic Risk Configuration; Position Managers and allow list mechanics; treasury flows; spoke permissioning; and security, testing, and bounty.

Public audits progressed this month: two engagements moved into the fixing phase while other two remain in active review process. Likewise, @certora continues manual review and formal verification efforts, with the Hub almost fully verified. In parallel, engineering focused on hardening through targeted performance optimizations and small fixes.

Our internal test suite has reached a mature state, comprising of 934 unit, fuzzing, and scenario tests with 100% coverage. Complemented by a set of symbolic tests we use to prove simpler properties in-house, while @certora maintains formal verification tests to prove properties more robustly. Additionally, we started working with a provider to build a solid invariant test suite.

What else are we working on?

Aave V3 on Aptos

We continued stewarding the Aave V3 market on Aptos throughout this month, prioritizing production stability while preparing the next set of additions. We completed internal reviews for GHO and initiated external security audits with agreed scope and timelines, prepared governance submissions for GHO and prospective new asset listings, and advanced incentives planning with campaign frameworks pending final data validation. In parallel, we monitored market health in production and scoped market upgrades with a staged rollout plan tied to test coverage and change log review. While Aptos is still on training wheels, we are now confident to move into a phase that enables the growth of the protocol in the coming weeks, a separate update will follow.

GHO Multichain Strategy

Following our review of @TokenLogic’s fixes to the CCIP Bridge implementation, we provided remediation feedback to @Certora and @TokenLogic. The implementation of the CCIP Bridge is now complete and ready for production.

Interface

Aave V4 Interface

Core loop implemented, enabling supply, borrow, repay, and withdraw in staging. We are updating key interface components to improve reliability, accessibility, and responsiveness. End‑to‑end tests now exercise the core loop, and we are addressing different scenarios while preparing for integration testing.

Aave Software Development Kit (SDK)

Work on the SDK continues with optimizations and design updates across the API, SDK and Docs. We are closing outstanding todos, simplifying developer interfaces and reorganizing guides to align with V4. e2e tests remain on track with expanding coverage.

Ongoing Integrations

We progressed the review of the Aave V3.6 to prepare its integration into the Aave Interface when released. Support for the ink market was added alongside limit orders on Ethereum mainnet and Arbitrum, with incentives support enabled. In parallel, the team shipped bug fixes and minor enhancements and introduced UX improvements, including a Favorites market selector and grouped categories to simplify navigation, in alignment with ongoing efforts alongside @aci and @tokenlogic.

What’s coming next?

Our main focus for the coming month will be

  • Aave V4: advance public audits and formal verification, continue Office Hours and launch Public Testnet.

  • Interface & SDK: complete V4 core flow testing and expand end‑to‑end and integration tests.

  • Integrations: prepare Aave V3.6 support in the Aave Interface, extend limit orders and incentives coverage.

  • Aave V3 on Aptos: progress external audits for GHO implementation and plan staged market upgrades.

  • GHO Multichain: continue Remote GSM reviews, and plan next chain deployments.

Stay tuned for next month’s update.

Aave Labs

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Thanks for the update. Cheers. :clinking_beer_mugs:

1 Like

Looking forward to the V4 testnet