what's aave?
Aave is a leading DeFi crypto lending protocol with over $50 billion in net deposits and a market cap of $4.07B. The project generated over $90M in fees during September 2025, setting pace for a monthly all-time high, though only $12M stayed with the protocol. Active USDC loans have surged 150% since the start of the year, helping Aave maintain its leadership position in active loans within the DeFi space. The protocol is preparing to launch its V4 update by the end of 2025, promising a major transformation of the ecosystem. Aave has achieved significant growth on the Plasma network, reaching $5.5B market size in just 3 days and representing 81% of Plasma's total activity. The platform continues to expand with new features including liquidity incentives through Aave Arc and lower interest rates to attract more users.
Aave integrated by Kraken for yield, LI.FI for cross-chain, and reached $15.5B Pendle deposits.
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Kraken integrates Aave to power yield functionality in its platform.
Integrated as one of 20+ vault protocols with LI.FI Protocol's unified DeFi Earn API for one-click cross-chain deposits across 60+ chains.
Crossed $15.5 billion in all-time Pendle asset deposits and is the number one protocol for PT collateral.
Achieved a +5% price move, leading top movers in the crypto market.
Reached $20M in deposits on Aave V4.
Added BTC.b, WETH, and wstETH as collateral options for borrowing MegaETH's USDm at interest rates below 0.02%.
Integrated GHO stablecoin into the protocol through a governance vote, reshaping token demand.
GHO borrowing interest paid to Aave decreased 30% quarter-over-quarter on average since Q3 2025.
Hiring for a Talent Relations Partner position in Engineering.
Generated less than $12.4M in fees over the last 7 days, ranking below Hyperliquid Perps in onchain fee generation.
Provides $1M account protection per user on Aave App.
Aave Labs commits to working exclusively on Aave-related products with full lock-in to the project.
Activated fee switch, generating $10-20M new revenue from swaps on Aave.com and Aave Pro, additional to existing protocol revenue.
Holds UK EMI license and EU MiCA license via Push Virtual Assets Ireland, pursues global licenses for fiat onboarding.
Secured $42.5M funding. DAO approved $25M stablecoin grant plus 75,000 AAVE tokens to Aave Labs with 75% support.
MegaETH teased the launch of an incentive program for Aave users on its chain.
Used as an example asset in a discussion of Hyperliquid's HIP-4 event futures proposal, where traders could buy on-chain CDS protection against an Aave exploit while cross-margining that position with AAVE perpetual futures.
Transaction data from V3 was examined in a Bank of Canada research paper titled "DeFi Lending: Returns, Leverage, and Liquidation Risk"
Raised frxUSD caps on V4 as part of its security-first launch strategy.
Experienced a ~$50 million user loss on 2026-03-12 when a user swapped $50,432,688 worth of aEthUSDT for approximately 327 AAVE tokens (valued at ~$36,425) through the CoW Swap widget integrated in the Aave interface, resulting in 99.9% price impact due to extreme illiquidity in the USDT/AAVE trading pair.
GHO supply reached all-time high of $600M.
Received SOC 2 Type II attestation for Availability, Confidentiality, smart contract, application, and ICT security.
Has 95% of token supply unlocked, with minimal sell pressure from vesting schedules.
Departed key contributors, including ACI, and Risk manager who served 3 years.
Reached $1.48B in total deposits on Mantle, becoming the 3rd biggest market, larger than Base or Arbitrum.
Scheduled for appearance on Bell Curve podcast with Stani Kulechov to discuss Aave v4 within the next three weeks from April 9, 2026.
Integrated with HeyAnon AI agent platform through Model Context Protocol (MCP), enabling AI agents to interact with Aave protocol for automated operations including swaps, deposits, withdrawals, and health monitoring.
Generated $1.53M in protocol fees over 24 hours as of April 11, 2026, ranking 5th in DeFi.
Reached $13.5M net TVL on V4 Ethereum in its first 14 days; TVL was $7.6M on April 9, 2026.
Sits at $25 billion TVL, representing 30% of total DeFi TVL.
Passed "Aave Will Win" governance proposal, unifying 100% of revenue from all Aave-branded products to AAVE token and DAO treasury. Revenue supports staking, fee sharing, and buyback pilots.
Grayscale's Zach Pandl states that Aave could become a household name.
Confirmed no technical blockers for Aave V3.6 deployment on Monad.
Reached over $123 million in wrsETH supplied on Aave V3 Mantle market, reported as the fastest growing asset on that market.
Boosted rewards for wrsETH on Aave V3 Mantle market end on 2026-04-15.
Launched V4 April 9, 2026, with hub-and-spoke architecture supporting over 20 assets across three liquidity hubs, risk isolation, Aave Shield (blocks swaps >25% price impact), and a reinvestment feature generating yield from float capital. Incentives remain allocated to V3.
Crossed $10 billion in deposits on V4.
Increased V4 core ETH, rsETH, and other asset deposit caps; other assets and borrowing remain available.
All new features and protocol extensions are planned for V4, with no contributions from BGD to V4 development.
Aave Horizon has reached a market size where Grove's allocation represents 38% of it, as part of Grove's $3.1B RWA portfolio.
LBTC is integrated on Aave V4, enabling LBTC looping and stablecoin borrowing use cases.
DAO approved Reental's community lending market (Reenlever) via public governance vote, integrating Aave's security layer to support real estate-backed USDT lending at 12% APY.
Participated in an in-person industry gathering with other DeFi protocols including Compound, Curve, Euler, Spark, and others during the week of March 31 to April 6, 2026.
Integrated $100M JAAA (AAA CLOs from Centrifuge) strategy as collateral on Aave Horizon with Centrifuge.
Integrated with Mantle (MNT) L2 Q1 2026, enabling natural language DeFi operations alongside LiFi Protocol.
PT-Strata will be listed on Aave V4.
V3 USDC lending rates pushed above 10% in 2024.
Market-wide base APY reached parity with the Fed Funds Rate recently.
Broke below $90 support level on April 7th, 2026, falling to a near 2-year low.
Integrated Pendle Plasma PT tokens: sUSDe (18 JUN 2026), USDe from Ethena (18 JUN 2026), srUSDe from Strata Markets (25 JUN 2026), and PT-USDG as collateral on V3.
Cumulative deposits exceeded $2.5 trillion and liquidations exceeded $2 billion over three years with zero bad debt.
Generated $2.18M in fees over 24 hours as of April 7, 2026, with an annualized rate of $727.83M.
Increases supply caps for wrsETH on Aave V3 Mantle market.
Generated $140M protocol revenue to Aave DAO in 2025, with 2026 on track to match. Maintains $3M risk management budget.
Chaos Labs stepped down as risk manager for V2 and V3, effective April 7, 2026, with LlamaRisk inheriting mandate for oracles, vaults, and risk parameters.
Hosts a rewards campaign on V3 Core market for rsETH-ETH looping in E-Mode with up to 9% rewards, running from April 3 to May 1, 2026.
Ranked 4th in Santiment's top 10 DeFi projects and 1st in top Yield Farming projects by development activity for April 2026, increasing ranking from previous month.
A trader sold 13,150 AAVE tokens worth $1.21 million on 2026-04-05.
sGHO grew by 1.6x over the 180-day period ending April 5, 2026.
Generated $4.2M USD in fees from Chainlink SVR in February 2026.
Launched a lending market on MegaETH chain supporting BTC.b, WETH, and wstETH as collateral assets, with USDm as a borrowable native stablecoin at under 0.02% interest rate.
Integrated with Chainlink standard as part of a recent adoption update covering 18 integrations across 9 services and 22 chains.
Deployed on X Layer; enabled aToken trading directly on OKX's DEX without requiring withdrawal from Aave.
Generated $1.5 million in fees over 24 hours on April 6, 2026.
Generated $194,142 in revenue over 24 hours as of April 6, 2026.
Integrated with Whop.
Reached $42.34 billion TVL in March 2026, a 45.45% year-over-year increase, equivalent to OKX or Bybit's AUM.
Reached $17.409 billion in borrowed amounts in the last 30 days, representing over 50% of all borrowed capital in DeFi lending protocols.
Generated $43.94 million in fees during March 2026, representing a 9.01% year-over-year increase.
Generated $6.64 million in revenue during March 2026, representing a 7.79% year-over-year increase, driven by steady borrowing and lending demand in its DeFi money markets.
Reached 114,400 monthly active users in March 2026, representing a 2.10% year-over-year increase.
Bank of Canada published 38-page report on Aave as primary case study, finding it technically and operationally viable with proper governance while highlighting constraints including reliance on crypto cycles, value capture mechanisms, and overcollateralization requirements.
Generated $303,255 in revenue over 24 hours on April 7, 2026.
Implements Aave Savings Rate (sGHO product) with fixed 4.25% APR and ERC-4626 vault during the week of April 6-13, 2026.
Holds approximately $40 billion in total value locked mid-2025 across 14+ chains.
Processed $210 million in liquidations on February 4, 2025 with zero new bad debt, the largest liquidation event since 2022.
Accumulated $2M bad debt and secured trillions in cumulative deposit and borrow volume since early 2020.
Generated $22.6 million in Q4 2025, the highest quarterly earnings in protocol history, but down 38% compared to Q3 2025.
Some Layer 2 deployments including zkSync, Soneium, and Celo are operating at a net loss.
Reached $26 billion TVL with zero bad debt under Chaos Labs risk management.
Holds approximately $160.9 million in DAO treasury assets, with about $100.6 million in non-AAVE assets
Holds approximately 62% market share in DeFi lending.
Reached $33.58 billion in TVL on April 7, 2026.
Generated $2.18 million in fees during the 24-hour period ending April 4, 2026.
Launched V4 with new features and protocol extensions, distinct from V3, on Aave address book, reaching $9M deposits within one week.
Has $8.3M in idle capital deployed on the platform as part of the Total Value Verified (TVV) metric for 3Jane's unsecured lending product.
39% of borrowing leverages ETH staking as of 2025.
11.6% of borrowing on Aave loops Ethena USDe as of 2025.
Yields 2% APY on USDC/USDT as of 2025.
Suffered an exploit resulting in $862,000 loss on Aave V3 during Q1 2026.
Proposes $51M budget for Aave Labs: $25M stablecoins, 75,000 AAVE, $17.5M growth grants, following December 2025 governance dispute with DAO over revenue diversion.
BGD Labs departed late 2025; ACI departs 2026-03-03. Absorbed 40 functions from both teams.
Serves as DeFi layer for RWA collateral, contributing to growth from $33M to $2B over one year alongside Morpho and Sky Ecosystem.
Generated $202,243 in revenue over 24 hours as of April 3, 2026, following $208,254 on April 2.
Receives 10M USDe deployment into liquid leverage via OlympusDAO's OIP-195 proposal with net yield directed to OlympusDAO's Yield Reserve Fund for buybacks
Achieved $209.7M tBTC supplied on V3 Ethereum as of April 1, 2026.
Achieved $167.4M LBTC supplied on V3 Ethereum as of April 1, 2026.
Deployed on Mantle L2 with an 8M MNT incentive program from Mantle; deposits crossed $1.45 billion with Token_Logic.
Mantle became the 4th chain to surpass $600 million in USDT supply on Aave.
Reached over $110M in wrsETH supplied by KelpDAO on Aave v3 Mantle market.