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Aave has deployed its V3 lending protocol on the Monad blockchain. The launch brings support for 12 crypto assets, while the Monad Foundation has committed $15 million to liquidity incentives and ecosystem growth during the network's first year.
At launch, Aave V3 supports USDT0, USDC, GHO, USDe, mUSD, AUSD, WETH, cbBTC, wstETH, weETH, syrupUSDC, and sUSDe.
The deployment also marks the first Aave integration with Chainlink Smart Value Recapture, a feature that redirects a portion of liquidation revenue back to the protocol.
According to Aave DAO governance documents, the Monad Foundation has also committed to purchasing and holding 10 million GHO for at least six months. In addition, the DAO allocated 500,000 GHO to incentivize user activity.
However, analysts at LlamaRisk noted that after Monad's mainnet launch in November 2025, the initial surge in activity began to slow, while liquidity remains concentrated across a relatively small number of protocols.
As of early June, the network's total value locked (TVL) stood at approximately $359.5 million.
Earlier, Centrifuge announced plans to bring tokenized U.S. Treasurys, private credit, and AAA-rated collateralized loan obligations (CLOs) to Monad. The company expects DeFi to continue expanding over the coming years as more capital enters the sector.
Analysts at Standard Chartered share a similar outlook. The bank recently forecast that assets in the DeFi sector will grow 37-fold to $2.7 trillion by 2030, citing tokenized real-world assets (RWAs) and the continued expansion of the crypto-native economy as the main growth drivers.
Earlier, Standard Chartered initiated coverage of Aave and projected that the AAVE token could reach $3,500 by 2030.