Aave's Monad Launch Pulls Over $100 Million in Deposits

Aave deployed its V3.7 lending market on the Monad blockchain on July 2, and the protocol recorded more than $100 million in total deposits within the first 48 hours. Monad is an EVM‑compatible layer‑1 chain that claims to handle up to 10,000 transactions per second, offering fast settlement for DeFi applications. The launch was supported by a $15 million incentive package from the Monad Foundation and an initial bridge of 10 million GHO, Aave’s native stablecoin, to the new market.

In parallel, Aave’s V4 market on other chains reached a record $250 million in deposits, indicating the protocol is expanding liquidity across multiple networks without cannibalising existing pools. While the rapid inflow of capital demonstrates strong interest, analysts note that a significant portion may be incentive‑driven, and the long‑term health of the market will depend on utilization rates and genuine borrowing activity rather than just parked capital.

The expansion marks GHO’s first deployment on a non‑Ethereum layer‑2 chain, widening its multichain footprint and potentially increasing demand for the stablecoin as collateral and borrowing currency across the DeFi ecosystem.