Aave has officially deployed Aave Protocol v3.7 on Monad on July 2, opening an additional lending and borrowing market on this EVM-compatible Layer 1 after receiving approval from Aave governance. The launch comes as Monad’s DeFi Total Value Locked (TVL) approaches $450 million, according to DeFiLlama data, while Aave’s Monad market quickly surpassed $100 million in total market size following its initial deployment phase.
Aave V3.7 Launches on Monad
Aave went live on Monad with Aave Protocol version v3.7 after securing approval through Aave governance, according to an announcement from the Monad Foundation on July 2. The deployment opens an additional lending and borrowing market for Monad users, supporting 12 assets from day one.
The list of supported assets includes USDT0, USDC, GHO, USDe, mUSD, AUSD, WETH, cbBTC, wstETH, weETH, syrupUSDC, and sUSDe. This selection covers stablecoins, ETH liquid staking assets, BTC wrappers, and yield-bearing collateral, establishing a foundation for both asset supply and borrowing activities on Aave.
The arrival of Aave adds a major lending protocol to the Monad ecosystem, where borrowing and lending markets have begun to form alongside the growth of on-chain liquidity.
Monad Market Tops $117M
Aave’s Monad market has reached a total market size of $117.56 million, according to data from the Aave app. Within this, available liquidity is $69.08 million, while total borrowings are $48.47 million.
This momentum follows the $75 million deposit milestone within the first 24 hours post-launch, announced by Aave on X on July 3. In the same update, Aave stated that deposits on Monad had neared $80 million.
Aave V3 on Monad. Source: Aave
Total market size reflects the amount of assets supplied to Aave on Monad, while borrows show the portion of liquidity that users have borrowed. With $48.47 million in total borrowings, the amount of borrowed assets currently equates to over 40% of the total market size, indicating that the market experienced early two-way activity after launch. For a newly deployed lending protocol on a new chain, the noteworthy point is not only the volume of supplied assets but also the speed at which liquidity began to be utilized by borrowers.
Monad TVL Nears $450M
Monad recorded approximately $449.84 million in DeFi TVL according to DeFiLlama data, placing the network among the chains with significant on-chain liquidity during its early mainnet phase.
Monad’s Total Value Locked. Source: DeFiLlama
Aave joins Monad at a time when the lending market on this network already sees the presence of multiple other protocols. According to data from DeFiLlama, Euler V2, Morpho Blue, and Curvance are all among the major lending markets on Monad by TVL.
This competition makes Aave’s deployment not just an addition of a major lending venue to Monad, but also a test of Aave’s ability to attract liquidity within an ecosystem that already offers multiple borrowing and lending options.
Stablecoin Borrowing Leads Early Activity
Borrowing activity on Aave’s Monad Market is predominantly concentrated in the stablecoin sector. According to Aave app and DeFiLlama data, USDT0 recorded approximately $20.2 million borrowed, USDC around $16.0 million, AUSD around $5.0 million, and mUSD around $4.1 million. WETH also saw over $3 million borrowed, but stablecoins still account for the majority of borrowing activity in the early phase.
syrupUSDC is currently the asset with the largest supply in the market, at approximately $46.85 million. This structure indicates that Aave’s initial liquidity on Monad tilts toward stablecoins and yield-bearing collateral, rather than being evenly distributed across all 12 supported assets.
The Monad Foundation stated that subsequent phases could add Pendle PT assets and Fastlane’s LST. Expanding the asset list could help Aave move beyond the initial stablecoin borrowing demand, especially if demand for yield assets and liquid staking collateral continues to rise on Monad.
