Aave is approaching its v4 rollout while a dispute over revenue, DAO authority, and contributor influence continues to divide the community, with ACI and BGD Labs exiting during the conflict.
Stani Kulechov said DeFi has grown into a broader financial ecosystem, while Aave Labs proposed sending all product revenue to the DAO treasury in exchange for $25 million, 75,000 AAVE, and future grants, prompting criticism from Marc Zeller.
Aave Labs and four DeFi protocols have submitted a constitutional proposal to Arbitrum DAO to unfreeze 30,765 ETH and route it into the DeFi United recovery fund aimed at covering more than $190 million in bad debt tied to the Kelp incident.
Aave's core development team BGD exits after contract expiry, expressing concerns over the v4 roadmap. AAVE token price plunged over 6%. Meanwhile, SEC closed its four-year investigation into Aave without action.
Aave founder Stani Kulechov denied rumors of a 70% discounted token sale, clarified that all protocol revenue goes to AAVE holders, and revealed Aavenomics 3.0 will feature an automated buyback mechanism.
Aave is dealing with a sharp internal rupture as Chaos Labs, BGD Labs and ACI move to exit. The dispute spans V4 design, contract renewal terms, governance power and risk management.
AAVE gained after the Aave DAO approved the “Aave Will Win” proposal, sending all Aave-branded product revenue back to the DAO treasury and backing Aave Labs with a new funding package.
Aave has coordinated a cross-protocol rescue effort after the Kelp DAO exploit created a massive rsETH bad debt hole. Pledges have topped $303 million, though actual funds raised remain below the target.
