Woofun AI reports that Aave has deployed its V3 lending protocol on the Monad blockchain, initially supporting 12 assets including USDC, GHO, USDe, WETH, cbBTC, and wstETH. This deployment marks the first time Aave enables the Chainlink Smart Value Recovery (SVR) mechanism at launch, allowing the protocol to reclaim a portion of MEV value generated during liquidations.

The Monad Foundation has pledged $15 million in incentive funds for the first 12 months post-launch and agreed to purchase and hold 10 million GHO for at least six months.

Additionally, the Aave DAO committed 500,000 GHO as incentives to support applications on the network.