Overview
- Aave launched its V3.7 lending instance on Monad and listed 12 assets, with GHO enabled for borrowing and liquidity on the Layer 1 network.
- The deployment activates eModes, which let users borrow at higher loan-to-value ratios when collateral and loans share close price moves, raising capital efficiency and concentration risk.
- GHO is bridged to Monad using Chainlink’s Cross-Chain Interoperability Protocol to move the stablecoin between networks and support cross-chain borrowing.
- The Monad Foundation committed $15 million in first-year incentives and will acquire 10 million GHO to hold for over six months to seed liquidity, and Aave allocated additional GHO to support early activity.
- Governance cleared the launch after a February temp check and a near-unanimous AIP vote in late June, and observers warn that incentive-driven or 'rented' liquidity must be judged by borrowing demand and utilization rather than raw TVL.