The second quarter of 2023 saw Aave continue its growth trajectory, with a 9% quarter-on-quarter increase in the total value supplied, outpacing the broader market. This growth was largely driven by activities on the Ethereum Mainnet, with stETH gaining an additional 5% deposit market share. There was a minor decrease in ETH deposits, but this was offset by an increase in WBTC deposits. Aave's revenue also increased by 14% quarter-on-quarter, totaling $2.7 million. This increase was largely due to the ETH revenue, which grew by 38%, making up 43% of the total quarterly interest revenue. The revenue share from Aave’s V3 markets also doubled, indicating a user migration from Aave’s V2 to V3 markets.

In July, Aave launched its native over-collateralized stablecoin, GHO. This new addition allows users to borrow GHO against any collateral asset on the Aave V3 market at an optimized fixed rate. This setup allows the collateral to continue earning yield, reducing the cost of borrowing GHO. GHO-denominated debt enhances Aave's earning potential as it allows the protocol to retain 100% of the interest revenue.

In terms of security, BDG Labs introduced Aave Forest, a framework aimed at enhancing the security of the Aave protocol. It integrates live monitoring technologies and external platforms, referred to as "Owls," to detect potential exploit patterns before they occur. Aave V3 also implemented a system of roles, including RISK_ADMIN, POOL_ADMIN, and EMERGENCY_ADMIN, which can be assigned to Risk Stewards. These developments showcase Aave's commitment to enhancing security measures and optimizing operational efficiency within the protocol. The delay in releasing Portals, a toolbox designed to enable bridges to source liquidity on-demand, seems to be ending with developments from Chainlink.

In conclusion, Aave has shown significant growth and development in Q2 2023, with increased revenue, the launch of a new stablecoin, and enhanced security measures. The migration of users to Aave's V3 markets and the launch of GHO indicate a promising future for the protocol.