$72.3M in active loans now sits on Aave’s @XLayerOfficial market, nearly triple the $26M recorded on August 26. User deposits climbed 56% over the same period, from $121M to $189M.

$28.1M in $wstETH user deposits now sits in Aave V4’s Main market, a new all-time high, up 24% in the past week. Lido’s staked ETH is building a larger collateral base inside V4's hub-and-spoke architecture.

AIP-514 just passed 👻 We’re bringing @pendle_fi $PT-USDG to @aave V3 on @XLayerOfficial, turning fixed-yield $USDG into collateral. Once live, users can borrow $USDG at up to 93.59% LTV while keeping their fixed-yield position. X Layer is backing it with $150K in incentives.

Aave V4 active loans just reached $217M, and a market built around one protocol now leads V4 in active loans with $62M @ether_fi's specialized venue now accounts for 28% of all V4 active loans, roughly the same scale as flagship Main market, with $weETH collateral backing $WETH borrowing from shared liquidity at 92% utilization. This is what Hub & Spoke was built for 👻

Before a PT listing reaches the forum, a lot has to already be in place. For PT-AUSD on Monad and PT-USDG on X Layer, that meant: ✅ Pendle deployed on the chain ✅ Yield rebated into the wrapper (neither AUSD nor USDG pays holders by default) ✅ Pool seeded deep enough to trade ✅ Underlying already live as an Aave reserve ✅ Chain and issuer incentives pointed at the same asset ✅ PT looping has market viability with a liquid supply of borrowable assets No single team controls all of that, but someone has to coordinate it. @Token_Logic did, twice in four weeks, streamlining quality PT markets to Aave. Then it comes to us: supply caps, E-Mode thresholds, discount rate bounds, and dynamic risk operations by LlamaGuard PT, tuned continuously throughout the asset's lifecycle. All market operations through bounds set by the DAO. Professional risk coverage of the full market lifecycle is why the largest PT markets in DeFi are on @aave.

🚨 Major changes are coming to Aave's stablecoin markets As a reminder, on @aave, a stablecoin's borrow rate is never fixed. It follows a curve driven by several parameters, including Slope1, which sets the normal market rate as long as utilization stays below a certain threshold known as Optimal Utilization, often called the kink (denoted U*). In a new governance proposal submitted this week, @Token_Logic proposed raising Slope1 by 50 basis points across 22 stablecoin markets, pushing the target rate from 4.0% to 4.5%. 👉 The logic is fairly simple: if borrowers keep taking on debt even as the market already sits around the target rate, that signals demand is strong enough to absorb a higher cost. Aave can therefore raise its rates and capture more value without necessarily disrupting current momentum. Raising borrow rates would above all improve the yield offered to depositors, strengthening Aave's position against competitors like Morpho or Maple, while also boosting the revenue captured directly by the protocol. At constant volumes, this change alone would add roughly $2.55 million in annualized revenue to the DAO. In practice, however, the increase won't be applied all at once. It will be rolled out gradually, in 10 basis point increments, generally on a weekly basis. This way, the rate can keep climbing as long as borrowing demand stays solid or keeps growing, while a significant enough contraction in debt would halt the increases. The main appeal of this approach lies precisely in its gradual nature. Rather than imposing a full 50 basis point hike immediately and risking a drop in demand, Aave can observe how the market reacts at each step and gauge how far borrowers are willing to follow. We break it all down in our full analysis on the Alpha Feed 👇

Coinbase Tokenized Stocks are now live on @base. @aave V4 will be the place where tokenized stocks meet onchain credit, opening new opportunities that traditional stocks can't offer.