[ARFC] Deploy Aave Protocol v3.7 on Monad

Governance
6

Following the asset risk assessment shared above, we provide an update on the price feed configuration for the initial Monad deployment.

Given that Monad launches with an already bootstrapped user base, with meaningful supply and borrow activity expected from the outset, we recommend enabling Smart Value Recapture (SVR) feeds from the first day of operation. Unlike a cold-start deployment where liquidation flow builds gradually, the existing activity on Monad means recapturable value is present immediately, so deferring SVR would forgo recapture revenue during a period when it is already available.

The configuration is equivalent to the system already in production on supported L2s, notably Base and Arbitrum, as described in [ARFC] Aave Chainlink SVR Multi-Network Expansion (Base, Arbitrum). SVR routes the oracle extractable value generated during liquidations back to the protocol rather than to external searchers, and the Monad setup applies the same wrapper and adapter pattern used on those networks. The SVR-enabled asset adapters consume the corresponding ScaledPriceAdapter SVR wrappers, while GHO and mUSD retain standard (non-SVR) feeds consistent with their pricing approach elsewhere.

The full adapter list is as follows.

Price Adapters (non-SVR)

ScaledPriceAdapter (SVR wrappers)

Price Adapters (SVR-enabled)

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