What is Aave? How the $10.9B DeFi lending protocol works and what can go wrong
Aave is a set of smart contracts where people supply crypto to earn interest and borrow against collateral, with no bank in the middle. As of November 2, 2026, DefiLlama counted about $10.9 billion locked in it, most of it on Ethereum.
Aave weighs a 60 million cap for USAT on Avalanche, where its supply is zero
Aave Labs wants USAT, the Anchorage-issued dollar stablecoin built with Tether's technology, on Aave V4's Avalanche hub. Risk firm LlamaRisk backs it as borrow-only at a fixed $1, but flags an uncapped mint key and a bridge that is not live yet.
Native bitcoin as Aave collateral? Babylon's plan starts with a 300 BTC cap
Babylon Labs wants Aave V4 to accept bitcoin that never leaves the Bitcoin chain, with no wrapper or custodian. Aave Labs says the integration works and LlamaRisk has set a 300 BTC starting cap, but a Snapshot vote is still to come.
Aave lets an outsider set the risk: Sentora opens the first curated V4 markets
Sentora, not Aave's usual risk providers, now picks the collateral and rules for three Ethereum lending markets on Aave V4. Users can borrow RLUSD, OUSD and PYUSD, and the DAO keeps half the revenue under Sentora's proposal.
Borrow dollars against Nvidia stock, even on a Sunday: Aave's first month, $5.2M lent
Aave V4 on Base now takes seven Coinbase tokenized tech stocks as collateral for USDC loans. A month in, $11.5 million of stock is deposited, ten tiny liquidations have hit, and there is no bad debt. US users are shut out.