Iyan

@ Aave Labs

[Stani @StaniKulechov]

Every company will eventually write their own software to replace third party services that are dated, slow or overpriced.

Even for startups part of founding a new company will mean writing dedicated software to run the company.

[Stani @StaniKulechov]

https://t.co/Dit2okHMxx

[Marcelo Ruiz de Olano | KPK @claberus]

Contributing 100 ETH to https://t.co/uIVE15L5nA, personally
DeFi is worth defending
Hat tip to Stani and Aave for leading the initiative

[Stani @StaniKulechov]

Aave is my life's work and we're working nonstop to find the best possible outcome for users.

I’m personally contributing 5000 ETH to DeFi United as we continue working together with partners on formalizing more commitments. I’m working to see this resolved and market conditions normalized as soon as possible.

DeFi United.

[Aave @aave]

Aave service providers have been leading the DeFi United effort to restore rsETH's backing since the April 18 incident.

We believe ecosystem collaboration matters most in moments like this, and our priority is achieving the strongest possible available outcome for users.

Multiple strong indicative commitments are now in place to join this effort toward restoring the backing of rsETH. This includes @LidoFinance, whose contributors have published a proposal today to their DAO to participate in the joint recovery effort.

Lido is one of many partners who are stepping up. We will continue to announce further commitments as they are formalized.

[Aave @aave]

Update on rsETH incident:

According to our analysis, rsETH on Ethereum mainnet is fully backed.

Out of an abundance of caution, rsETH remains frozen across Aave V3 and V4 and exposure to the incident is capped.

WETH reserves also remain frozen across affected markets including Ethereum, Arbitrum, Base, Mantle, and Linea.

Aave is actively validating information and assessing potential resolutions.

[Stani @StaniKulechov]

Feels good to work for $AAVE

[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.

[Stani @StaniKulechov]

We respect the decision of Chaos Labs to step down as one of the two risk managers for the Aave DAO.

We want to thank Chaos Labs for their work over the years. They have been a valuable partner to the Aave DAO, and their contributions have helped Aave grow and mature.

There is no disruption to the Aave Protocol, its smart contracts, asset listings, or network deployments, and we will work closely with Chaos Labs during the offboarding process.

Aave operates with a two-layer economic risk model that has been managed by Chaos Labs and LlamaRisk. While this model does create tension between risk managers from time to time, we believe it has been valuable in safeguarding Aave. We strongly support maintaining a two-layer approach and will continue supporting this model, alongside an additional technical risk layer managed by Aave Labs.

Over the past weeks, we held discussions with the Chaos team regarding next steps, as Chaos was exploring winding down its risk consultancy services business (and had already begun winding down some agreements with other protocols).

We were generally supportive of a 2× increase in their risk management payment to $5M, but not supportive of $8M without a separate addendum at a later stage if the workload proved higher than anticipated.

What we did not support were other elements of the proposal, including setting Chaos Labs as the sole risk manager and using Chaos Labs price oracles instead of Chainlink on all new deployments, as well as adopting Chaos Labs vaults as the default vaults (which are not yet audited) for all B2B integrations.

While we do not see issues with these Chaos products or their future viability, we strongly believe that, given the scale of the Aave protocol, it should maintain at least a two-layer risk management model and vendor lock-in free vaults. Additionally, given the strong track record with Chainlink, we prefer to continue supporting Chainlink for price oracles, which our users are currently more comfortable with at scale.

Regarding Aave V4, the architecture introduces isolated risk markets through Spokes, new liquidation logic, and governance-controlled parameters that give the DAO more granular control over how it manages risk across different markets and assets. We held multiple risk calls with Chaos Labs employees in attendance well before V4 went live, and the feedback we received during those sessions does not align with the concerns expressed in their post.

For the immediate future, Aave Labs will work closely with LlamaRisk to ensure a smooth transition and uninterrupted risk coverage for the protocol.

LlamaRisk already serves as a risk contributor to the Aave DAO and has deep familiarity with the protocol’s architecture and parameters. We support LlamaRisk increasing their budget to accommodate this additional workload and expanding their team as needed. Aave Labs will also contribute engineering and analytical resources wherever necessary to support this transition.

We also want to thank the entire Chaos Labs team for their contributions over the years, as they have helped bring the protocol we built into its current level of maturity.

[Stani @StaniKulechov]

https://t.co/EnxI8qvvXZ

[Stani @StaniKulechov]

https://t.co/s1ozjoYDyX

[wishful_cynic @EvgenyGaevoy]

Generally, my biggest intellectual disability is default assuming people in charge of big and/or successful countries/companies know what they are doing and have a solid plan / understanding of the world around them

I empirically learned that this is NOT the case in more than 90% of cases I personally observed, yet I keep making this assumption by default🫠

That's not to say that these 90% are incompetent idiots. They are just people like you and me (often with superior people skills), with their own experiences, values, opinions and biases. Just not the 6D chess players we (instinctively) want them to be

[MONK @defi_monk]

Some thoughts on the current market and crypto if anyone cares:

> Broader market participants in December clearly underestimated Trump’s willingness to follow through on his campaign talk

> TradFi was not positioned for this, @0xSynthesis1 brought up a good analogy to early cynicism towards JPow’s willingness to say “fuck the markets” and raise rates in 2022

> The Bitcoin ETF and Trump’s election were the biggest idiosyncratic crypto catalysts we got. We are back to being higher beta equities now that that’s done.

> We continue to be taught the lesson that our alts have no floors. Protocols are businesses but tokens are not stocks. This won’t change until tokenholders can have some claim on the real cash flows of their protocols.

> The $RAY chart is disgusting. I think alot of liquid and VC funds have bought a ton of “fundamental eco tokens” on Solana that have really just been memecoin beta this whole time.

> $BTC dominance looks unstoppable, h/t to @mikeykremer

> I still think we see $BTC ATHs within a year. There is less of a systemic risk to risk assets now than there was when inflation fears and the FED were driving the markets.

>Casino capital will find a new landing spot, it will probably be an extremely profitable endeavor to predict where it ends up.

> Crypto is becoming more and more corporate with each passing year. If you’re convicted I highly recommend working in the industry. Coming from TradFi, the excitement and growth opportunity that comes with working in a high growth space is amazing.

> I continue to believe that outside of BTC and stablecoins, DeFi is the only real use case we have built.

> We haven’t started serving DeFi to the average global consumer just yet, but this cycle we drastically improved the DeFi experience for crypto natives. We can how handle far more txns on better looking front ends. We have ample blockspace. Intents made cross VM bridging super easy. Hyperliquid can now compete with CEXs. Aave borrows continue to grow. Don’t let them tell you we made no progress.

> Could be good r:r to farm and be an early participant in new ecos like Abstract, MegaETH, etc. No one is paying attention rn.

> Still long $HYPE - believe in Jeff

[jfab @josefabregab]

If someone with 7-8 figs wants safe returns on their capital, but higher than they would get off-chain, 10/10 times you will introduce them to @aave on Ethereum, not to DeFi on Solana, Tron, Celestia, or so.

This is one of the many reasons why there is no Ethereum killer.

[loldefi* @loldefi]

Just in time for the $2b unlock next month

[preslaven @preslaven]

Reading @aave V3 docs will definitely improve your general DeFi understanding and how many things work under the hood.
https://t.co/kfWkf5cyuP