Ry Guy

Ethereum

[Aave @aave]

Babylon Labs submitted a Temp Check to Aave DAO to integrate Trustless Bitcoin Vaults with Aave V4.

This would allow native BTC as collateral and introduce two new V4 Spokes, one for borrowing against BTC and one for post-liquidation settlement.

[Ry Guy @EthIsGod]

@eldarcap @eulerfinance @monad @aave @ethereum Would you rather they just full migrated everything immediately and had V4 at billions even tho not battle tested?

[Ry Guy @EthIsGod]

@eldarcap @eulerfinance @monad @aave @ethereum Genuine question, not hating here.
How come you have a lot of negative takes on V4? Its new code, not the battle tested V3. Based on current supply caps with the security first approach i dont think they can even go above 160 mil in deposits or something.

[Stani @StaniKulechov]

Aave Will Win, the most important proposal in Aave's history just passed with a landslide.

Here's the master plan going forward:

General Direction

- Aave becomes fully token-centric: one asset, one model: $AAVE

- To date, protocol revenue per AIP-1 has accumulated to the Aave DAO: $140M in 2025, with 2026 on track to match that despite the market downturn being limited to protocol-only revenue

- The AWW proposal introduces a new revenue stream: application and product revenue generated outside the Aave Protocol, now directed to the DAO as additive revenue

- This covers Aave Pro, https://t.co/V3TzmYrmSG, Aave App, Horizon (RWAs), and Aave Kit, all flowing back to the DAO treasury

- Swaps on https://t.co/V3TzmYrmSG and Aave Pro are already generating $10–20M in new revenue on top of existing protocol revenue

- Aave V4's reinvestment feature ensures that float capital in pools generates yield, creating additional revenue streams, similar to how Aave V4 Spokes open up new revenue opportunities

- AWW gives Aave exposure to the full vertical stack. Owning that stack is increasingly critical in a competitive landscape where protocols get commoditized

- AWW also establishes a community-protected vehicle to independently govern Aave's brand assets and IP on behalf of token holders

- Aave Labs commits to working exclusively on Aave-related products, fully locked in

- If you own $AAVE, you own not just the economic rights of the protocol, but the brand, the users, and the integrations

In other words: everything belongs to one asset, the $AAVE token

- We believe tokens are the greatest opportunity of our time to build collectively governed protocols, but a single, unified vision is essential for execution

- That vision is provided by Aave Labs, working alongside all Aave service providers to grow Aave from a $40B protocol to $1T and beyond

Product Layer & Distribution

- Aave App will onboard millions of users with a simple, fintech-like experience while ensuring users retain full control over their funds, backed by $1M account protection per user. A card will also launch later, generating additional fees for the Aave treasury

- Aave Pro will be the premier destination for power users: sophisticated features, simple on-ramping, and the best of DeFi in one place

- Aave Labs has the best designers and design engineers in the space, committed to delivering a high-fidelity experience for every user

- Aave Kit will provide SOC2-compliant, enterprise-grade integration for fintechs and partners

- Horizon will expand with Aave V4 support and more flexible asset onboarding to scale RWAs on Aave

- New Aave V4 Spokes will unlock additional collateral and address the demand side of DeFi liquidity

- Together, these products aim to bring DeFi to everyone and position Aave as the base credit and repo market for the entire $400T+ TradFi asset base

Engineering & Tech

- Aave Labs has the best engineers in DeFi. We built V1 through V3, GHO, and most recently V4, and this is just the surface of what we're building next

- Aave V4 paves the way for next-generation lending, and Aave V3 will remain fully supported and maintained by Aave Labs for years to come

- We are security-first. Smart contract security, application security, and ICT security are non-negotiable, and our recent SOC2 compliance reflects that. Institutions expect it, and we deliver it

- We will invest in agentic AI, opening up new opportunities for developers building with Aave

Marketing

- Aave has historically led crypto in brand, events, content, and partnership marketing. We're doubling down on our brand recognition and the strong foundation we've built

- Going forward, we'll expand into new audiences and channels to bring Aave mainstream, building net-new, stickier userbases among people who are new to DeFi

Growth

- Aave will deepen relationships across the DeFi ecosystem and build new bridges with fintechs, banks and asset managers

- At its best, Aave isn't a bank. It's a financial network that any fintech, bank or an asset managers can plug into, and providing the best integration tools will be key
BD efforts will rely on tight collaboration between service providers such as Token Logic and our partner networks

- We honor our long-term partnerships and commitments, including @chainlink

- We recognize the value Aave represents today and expect partners to approach us with the same respect

Governance

- We support a multi-contributor model for Aave and will continue to embrace it

- We will oppose any vendor lock-ins or service providers that build products for themselves at the expense of token holders

- We require full transparency from the SPs and no tolerance for relationship gating as all value needs to drive to Aave

- Zero value leakage: everything built with Aave's funds must benefit Aave and be owned by Aave

- SPs who align with these principles and commit to what's best for token holders will have our support on budgets, as long as they are reasonable

- The DAO is taking a zero-bureaucracy approach: execution and skin-in-the-game are what matter. We are competing with some of the world's most efficient and well-funded organizations, and there is zero room for friction

- Every SP will have real, measurable goals. Payments for posting governance proposals are over. We've already consolidated SPs to focus resources

- Governance process improvements are coming in the months ahead: more efficiency, less politics

Risk Management

- We will continue to support a multi-layered risk management process encompassing both an economics risk layer and a technical risk assessment layer conducted by Aave Labs

- Aave's risk management will include external risk managers such as Llama Risk and Token Logic for commercial and economic assessment. Aave Labs will also establish a permanent internal risk management function to coordinate and support external risk managers, making the overall system more resilient

Building a Regulatory Moat

- Aave Labs has spent years building a regulatory moat around Aave's products and deepening vertical integration

- Aave is one of the only DeFi ecosystems operating at scale with regulated entities, including Push Virtual Assets Ireland, which is authorised as a CASP under MiCA, alongside a UK EMI-licensed entity

- We are actively pursuing additional licenses globally to enable seamless, 1:1 fiat-to-Aave onboarding for mainstream users, a prerequisite for mass adoption

- We go where the bar is high

Policy

- Aave Labs' policy team is world-class. We've participated in every major policy consultation over the years and will continue to fight for DeFi, protecting it from harmful regulation and ensuring legal certainty for users and integrators

- The next few years will be pivotal for DeFi policy. We are fully committed

Our Principles

- Security-first above all else. This is non-negotiable
Everything we build is truly DeFi, with self-custodial access at its core

- Innovation-driven, we will move the space forward by innovating and building something new

- For DeFi to scale, we need new audiences. That means growing the pie by building better experiences and infrastructure for users to access DeFi

- Friendly by default: anyone should be able to work with Aave if the merits support it

- Build and operate in public. Everything we do will be done openly, with the highest standard of accountability

This is the direction we are committing to, a multi-year journey. The foundation is set. Now it's time to build.

Aave will win.

[Ry Guy @EthIsGod]

@Nandy_ba Nandy this is a terrible take, especially given recent exploits in broader market.
Controlled launch, safety first. AAVE is purposely not pumping huge amounts into V4 right away to make sure everything is running properly. The same assets as on V3 will be listed eventually

[Aave @aave]

After incorporating community feedback, the ARFC for the Aave Will Win Framework has been published.

Aave Will Win is an alignment framework from Aave Labs that directs 100% of product revenue to the Aave DAO treasury under a token-centric model.

[Ignas | DeFi @DefiIgnas]

https://t.co/2OkCvas3hf

[Aave @aave]

Today we are proposing the Aave Will Win Framework, a new alignment framework that directs 100% of product revenue to the Aave DAO treasury under a token-centric model.

[Stani @StaniKulechov]

Since ETHLend in 2017, our mission has been to bring DeFi to the masses, powered by the Aave protocol and an application layer that now provides access to a $50B+ liquidity network.

Today, we’re proposing a new framework where Aave Labs becomes fully token-centric and redirects 100% of product-level revenue to the Aave DAO. This formalizes alignment between Aave Labs and the Aave DAO in service of token holders.

The Aave Will Win Framework expands Aave DAO’s revenue base beyond protocol revenue established by AIP-1 to include non-protocol and offchain revenue, materially increasing the DAO’s capacity to grow its treasury. This would position the DAO to fund growth, increase buybacks, and pursue other opportunities as it sees fit.

We believe Aave will serve as the backbone of global finance, a market measured in the hundreds of trillions. Building at the product layer creates new revenue for the DAO and helps scale Aave to mainstream adoption and bring DeFi to everyone.

Our goal is to achieve all of this with value accruing to one place: the $AAVE token.

[vitalik.eth @VitalikButerin]

Now that ZKEVMs are at alpha stage (production-quality performance, remaining work is safety) and PeerDAS is live on mainnet, it's time to talk more about what this combination means for Ethereum.

These are not minor improvements; they are shifting Ethereum into being a fundamentally new and more powerful kind of decentralized network.

To see why, let's look at the two major types of p2p network so far:

BitTorrent (2000): huge total bandwidth, highly decentralized, no consensus

Bitcoin (2009): highly decentralized, consensus, but low bandwidth - because it’s not “distributed” in the sense of work being split up, it’s *replicated*

Now, Ethereum with PeerDAS (2025) and ZK-EVMs (expect small portions of the network using it in 2026), we get: decentralized, consensus and high bandwidth

The trilemma has been solved - not on paper, but with live running code, of which one half (data availability sampling) is *on mainnet today*, and the other half (ZK-EVMs) is *production-quality on performance today* - safety is what remains.

This was a 10-year journey (see the first commit of my original post on DAS here: https://t.co/Fa0jKFgObW , and ZK-EVM attempts started in ~2020), but it's finally here.

Over the next ~4 years, expect to see the full extent of this vision roll out:

* In 2026, large non-ZKEVM-dependent gas limit increases due to BALs and ePBS, and we'll see the first opportunities to run a ZKEVM node
* In 2026-28, gas repricings, changes to state structure, exec payload going into blobs, and other adjustments to make higher gas limits safe
* In 2027-30, large further gas limit increases, as ZKEVM becomes the primary way to validate blocks on the network

A third piece of this is distributed block building.

A long-term ideal holy grail is to get to a future where the full block is *never* constituted in one single place. This will not be necessary for a long time, but IMO it is worth striving for us at least have the capability to do that.

Even before that point, we want the meaningful authority in block building to be as distributed as possible. This can be done either in-protocol (eg. maybe we figure out how to expand FOCIL to make it a primary channel for txs), or out-of-protocol with distributed builder marketplaces. This reduces risk of centralized interference with real-time transaction inclusion, AND it creates a better environment for geographical fairness.

Onward.

[fredcat @fredcat5150]

Big Aave news @StaniKulechov posts on the DAO forum ... nothing formal yet but an olive branch has been extended and it sounds like they are looking to continue working together

https://t.co/LJ67J8fUuY

"Alignment

That said, growing application-layer products directly increases protocol usage and protocol revenue. Products built on top of Aave taking their own fees does not exclude the protocol from making money. A self-sustaining company building on top of Aave Protocol can lead to the protocol making far more than it would otherwise.

Given the recent conversations in the community, at Aave Labs we are committed to sharing revenue generated outside the protocol with token holders. Alignment is important for us and for AAVE holders, and we’ll follow up soon with a formal proposal that will include specific structures for how this works.

Last, but not least, with respect to branding, we will work toward a structure in our upcoming proposal that supports this long-term vision with sufficient guardrails for the DAO and Aave token holders.

We all want Aave, including the token, to win and we’ll continue building out a comprehensive vision to make that happen."

[Stani @StaniKulechov]

The recent DAO vote has wrapped up, and it has raised important questions about the relationship between Aave Labs and $AAVE token holders. This is a productive discussion that’s essential for the long-term health of Aave.

While it's been a bit hectic, debate and disagreement are features of decentralized governance.

I want to state clearly: I am committed to making the economic alignment between Aave Labs and $AAVE token holders more clear. We haven't done a great job explaining this and will do so going forward. Another thing that’s gotten lost in this conversation is that the DAO has earned $140M this year, more than the past three years combined, and $AAVE token holders have control over this treasury.

In the future, we'll be more explicit about how products built by Aave Labs create value for the DAO and $AAVE token holders.

I also want to address my recent $15 million purchase of $AAVE. These tokens were not used to vote on the recent proposal and that was never my intention. This is my life's work, and I am putting my own capital behind my conviction.

Lastly, the Aave ecosystem is large enough for many service providers to succeed, and we will continue to support and collaborate with teams building on the protocol. I am confident that by working together, we will build a stronger and more aligned future.

$AAVE will win.

[Leuts.eth @A_Leutenegger]

Sneak peak: The Ownership Token Index launching in January will breakdown what a token controls and verify that claim with onchain code.

Investors will have the transparency to clearly determine the value of what they are buying. Separating the best tokens from the worst.

[darknight.eth @darknight_ethh]

Aave v3.6 is basically a green light for $wstLINK to level up.

The new controls make collateral design way sharper, and suddenly $wstLINK isn’t just “eligible”, it’s being sculpted into a high-performance asset with custom eModes and top risk teams tuning every parameter.

Silent now, massive unlock later.

@aave and @chainlink are loading something big.

[Naruto11.eth @naruto11eth]

Been building something using both @Polymarket + @aave == PolyAave

still need to work on some more details but highlevel idea is:

-- PolyAave lets Polymarket outcome tokens earn Aave yield
- Deposit a complete set (Yes + No), we redeem to USDC, deposit into Aave v3, and remint your outcome tokens on withdrawal.
- Yield is distributed via a time-weighted index per market.
- uses the Polymarket CTF adapter (`splitPosition`/`mergePositions`) and Aave v3 Pool.
- Open vault contract: `PolyAaveVault.sol` with per-market reward indices and public `accrue`.
- single-sided matching layer, resolution-aware pausing, Polygon fork tests + UI.

Am I missing something important?

thoughts? @shayne_coplan and @StaniKulechov ?

[Babylon @babylonlabs_io]

For a closer look at how native Bitcoin collateral will work on @aave V4, we’ve put together a full breakdown.

No wrappers, no custodians, just native BTC.

More details here 👇
https://t.co/H6fHpOtScv

[Ry Guy @EthIsGod]

@Nebraskangooner $AAVE ready to fly

[Aave @aave]

Aave V4 testnet, featuring a developer preview of our new interface, Aave Pro, is now live.

[Aave @aave]

Introducing Aave App, a smarter way to save.

[binji @binji_x]

low risk defi is a universal savings account that lets anyone with an internet connection access the same return curve once reserved for institutions.

it can change the world, truly.