Aave Labs said its August work focused on scaling newly launched deployments while moving forward on security, governance, integrations and product development across the Aave ecosystem. The update highlighted continued growth for Aave V4, progress on legacy asset and oracle changes, and new governance tooling on the main interface.

According to the monthly report, Aave V4 deposits across Ethereum and Avalanche rose above $800 million during August, while active loans reached a record high. The team said it also continued the process of activating Aave V4 Risk Stewards and carried out multiple rounds of supply and borrow cap adjustments as usage increased.

V4 growth and operational changes

Aave Labs said Aave V4 continued expanding on Ethereum and Avalanche through August. As deposits climbed past $800 million across the two deployments, the protocol also hit a new high for active loans. To keep pace with activity, the team executed supply and borrow cap adjustment rounds 12 through 15 on the two networks.

The activation process for Aave V4 Risk Stewards also advanced on both chains. Aave Labs described the stewards as a mechanism for routine parameter changes within limits set by governance, extending an operating model already used on Aave V3. For next month, the team said its main goal is to activate the V4 Risk Stewards on Ethereum and Avalanche.

Security reviews and integration work

Security remained a core theme in the August update. Aave Labs published material on its AI-assisted security approach for Aave V3 and V4, and said signer rotation for the Emergency Guardian moved forward through governance. The team also introduced the Config Engine for Aave V4 to the community and said it is coordinating an audit with Certora covering the configuration and deployment engines.

On integrations, Aave Labs said the Babylon integration is still undergoing a full security review. The team said it is working with Babylon to identify and address potential issues before market activation. Aave Labs also pointed to support for Coinbase Tokenized Stocks on Base, where Coinbase’s announcement included Aave as the only credit infrastructure, and to the activation of EtherFi Cash on Aave V4 on Optimism after deployment and parameter review. EtherFi Cash, the report noted, has reported more than 100,000 cardholders.

V3 deprecation plans move ahead

On Aave V3, Aave Labs said the low-adoption asset deprecation proposed by LlamaRisk has moved into implementation. The team is preparing the related AIP and aligning expectations with the DAO ahead of the next governance step. The proposal covers the gradual deprecation of reserves with limited adoption.

Planning also progressed for LlamaRisk’s proposed oracle deprecation across Aave V2 and V3. Aave Labs framed both efforts as part of a staged DAO approach to maintaining legacy assets and infrastructure while the protocol evolves. The team also supported LlamaRisk’s PT oracle implementation, starting with PT-srUSDe-22OCT2026 on Ethereum V3 Core, and applied a configuration change to the Aave V3 Risk Steward with a corresponding V4 change still to come.

Governance, GHO and product updates

During August, Aave Labs created one proposal, AIP 510, and reviewed six AIPs submitted by DAO service providers, including proposals tied to Monad, risk steward changes, funding, asset listings and the PT risk oracle. The team also supported execution of the syrupUSDG listing through the Global Dollar Hub and said technical assessments are continuing for assets such as USDC and PT-USDG on X Layer, as well as a preliminary review of the Arc network ahead of a possible Aave V4 deployment there.

Beyond the core lending protocol, Stable Vaults received onchain funding approval through AIP 512, allocating 300,000 GHO, 100,000 USDC and 100,000 USDT to the workstream. Aave Labs said it is now in talks with several firms on possible integrations. For GHO, the report said staked GHO reached $14.4 million, while Savings GHO passed yearn.fi’s curation review with a score of 2.5 out of 5.0 and a Low Risk classification. The Remote GHO Stability Module was also deployed on Monad during the month.

Next confirmed steps

On the product side, Aave Labs said gasless voting was implemented on the governance page of the Aave Interface, allowing votes to be cast directly there. Early access to the iOS Aave App was expanded through the Ghost Passes referral program, while Aave Pro added new asset and position views and is being redesigned around separate Earn and Borrow flows.

Looking ahead, Aave Labs said its priorities for the coming month include activating Aave V4 Risk Stewards on Ethereum and Avalanche, continuing support for the Babylon and Coinbase Tokenized Stocks integrations, and pushing the low-adoption asset deprecation and oracle deprecation initiatives into their next governance and implementation stages. The team also plans further work on Stable Vaults, GHO, the Aave App and new Aave Pro features including light mode, position swaps and leverage.

Source: governance.aave.com