Aave Brings V3 Lending and GHO Stablecoin to Monad Network 

TLDR

• Aave launches V3 lending on Monad with 12 supported crypto assets.
• GHO stablecoin goes live on Monad to support borrowing and liquidity.
• Monad Foundation commits $15 million to boost early DeFi activity.
• Chainlink SVR redirects part of liquidation value back to Aave.
• Monad gains a major lending venue as tokenized asset plans expand.

Aave has launched V3 lending on Monad, adding a major DeFi venue to the Layer 1 network. The deployment supports 12 assets and brings GHO stablecoin access to Monad users. It also introduces Chainlink Smart Value Recapture from launch.

Aave Adds Lending Infrastructure to Monad

Aave V3 now supports USDT0, USDC, GHO, USDe, mUSD, AUSD, WETH, and cbBTC. It also supports wstETH, weETH, syrupUSDC and sUSDe at launch. The asset list gives users borrowing, lending and collateral options from day one.

The deployment expands Aave’s multichain footprint and strengthens Monad’s early DeFi market. It also gives developers access to a tested lending protocol. Since Monad supports Ethereum tooling, teams can use Solidity contracts with limited changes.

Aave also enabled Chainlink Smart Value Recapture on the network from launch. The feature redirects part of liquidation-related value back to the protocol. As a result, the deployment adds both liquidity access and protocol-level revenue tools.

Monad Uses Incentives to Build Liquidity

The Monad Foundation committed $15 million in first-year incentives for the Aave launch. The foundation also agreed to acquire and hold 10 million GHO for over six months. Aave DAO allocated another 500,000 GHO to support user activity.

These incentives aim to seed liquidity and encourage early borrowing demand. However, sustained use will depend on activity after rewards decline. Monad needs active markets, not only headline total value locked.

Monad launched its mainnet and MON token on November 24, 2025. By early June, the network held about $359.5 million in total value locked. LlamaRisk supported the Aave deployment but recommended conservative starting parameters due to Monad’s short history.

GHO Expands as DeFi Eyes Tokenized Assets

GHO’s launch on Monad extends Aave’s native stablecoin across another blockchain network. The stablecoin already expanded to Base and Arbitrum after its 2023 launch. On Monad, GHO supports borrowing, liquidity, and broader stablecoin use inside Aave.

The launch also arrives as tokenized assets gain attention in DeFi lending. Centrifuge earlier outlined plans to bring tokenized Treasurys, private credit, and AAA-rated CLOs to Monad. Those assets could support lending and collateral markets as the ecosystem develops.

Standard Chartered has also forecast major growth in DeFi assets by 2030. The bank cited tokenized real-world assets and crypto-native demand as key drivers. Aave’s Monad deployment gives the network an established venue for future lending activity.