Aave’s Monad Market Tops $100M in Deposits Two Days After Launch

Deposits on Aave's new V3 market on the Monad blockchain exceeded $100 million on Saturday morning, TokenLogic reported, roughly 48 hours after the market went live.

Aave deployed V3 on Monad on Thursday, enabling lending, borrowing and the GHO stablecoin on the chain with support for 12 assets, including USDT, USDC, GHO, WETH and Coinbase's cbBTC. The protocol recorded more than $75 million in deposits in the first 24 hours.

Monad is an EVM-compatible Layer 1 network that launched its mainnet and the MON token in late November. The project reports high throughput and sub-second finality.

A LlamaRisk assessment posted to Aave's governance forum showed Monad held about $359.5 million in total value locked as of June 8. The new Aave market attracted assets equal to more than one quarter of that TVL within 48 hours.

The launch was backed by incentives specified in the deployment proposal. The Monad Foundation committed $15 million in incentives over 12 months and agreed to acquire and hold 10 million GHO for at least six months. The Aave DAO committed an additional 500,000 GHO to support stablecoin use on the chain.

Risk provider LlamaRisk recommended conservative initial risk parameters, noting Monad has operated for roughly seven months and that activity on the network is concentrated in established projects such as Uniswap, Curve and Morpho.

Aave deployed version V3.7 rather than the protocol's latest V4 release. The governance proposal leaves any decision to migrate to V4 to the Monad Foundation.

Aave founder Stani Kulechov wrote on X, ‘This is a remarkable milestone for Aave.' Keone Hon, co-founder and general manager of the Monad Foundation, added, ‘Aave is a lending standard trusted by institutions,' and described the deployment as bringing Ethereum-native liquidity primitives to a faster execution environment.

Next phases on Monad are expected to add Pendle PT assets and Fastlane's shMON liquid staking token. The launch follows Aave's March rollout on OKX's X Layer and comes amid increased activity on the Monad network.