Aave (AAVE)

⚡️A noteworthy signal—

Aave @aave's new Monad market accrued over $100M in deposits within two days, and Aave V4's total deposits exceeded $250M.

A real‑money test shows that blue‑chip DeFi has not been completely squeezed out of the market by memes and RWAs.

Major DeFi protocols are focusing on solving liquidity fragmentation, and have made considerable progress;

For example, Uniswap V4 and Aave V4 are essentially doing the same thing:

Unifying the underlying liquidity with the settlement layer while allowing upper‑level business modules to remain differentiated.

DeFi is clearly moving into the next phase, shifting from competition over single‑point products to competition over liquidity operating systems.

Where is the next certain opportunity?

Etherfi is preparing to deploy the Aave v4 hub, which will bring three good news for Aave:

1 20% revenue share
2 A strong start for the whitelabel hub
2 Etherfi Cash brings GHO lending demand

It is expected to bring $175 million in TVL (proposal target). Although the whitelabel hub will not count its TVL towards Aave's TVL, this can serve as an excellent case for v4 implementation, since Aave v4's own TVL is just over $200 million.

At the same time, a 20% revenue share has been promised, which is good news if Aave v4 development falls short of expectations.

The most valuable point is regarding GHO. The current Etherfi Cash operating model is that you deposit interest‑bearing assets like weETH into Etherfi; when you make a card purchase, the system automatically borrows a stablecoin to pay the merchant. Now this process has been moved from the Debt Manager to a self‑deployed Aave v4 hub, borrowing GHO in between and then converting it to USD to pay the merchant. Each time a user swipes a card, it is equivalent to borrowing GHO on‑chain, continuously generating organic lending demand.

This model features risk isolation and independent governance, giving it competitiveness for institutional adoption, though it is somewhat more conservative than the Morpho model, retaining some control and revenue share. It is a compromise solution, less decentralized than Morpho, but it directly retains a portion of the revenue.