Aave (AAVE)

Let me address some recent misconceptions I’ve seen about the $AAVE token (in a personal capacity). Some are claiming the recent DAO discussions mean the $AAVE token irrelevant. This is just wrong. The $AAVE token governs the Aave Protocol, where the *vast majority* of revenue comes from. The protocol is approaching c. $150 million in revenue over the last year from fees on borrowing, liquidations, and flash loans. This is the revenue that $AAVE holders control through governance, that goes towards buybacks, etc. No service provider or delegate, including Aave Labs, can change these types of *protocol-level* parameters on a whim. That requires a governance vote. This is true for V3 and it’ll be true for V4.

Re the Aave DaO v Labs thingy, one of the things I want from the clarity act is eliminating the need for DaOs and nonprofit Foundations to run a token funded busines. Its not in there but a man can hope

The main AAVE dev re-directed all fee revenue to his own company (instead of token holders + treasury) without a governance vote, making @aave governance essentially irrelevant. Another day, another protocol showing how little weight there is behind the word "decentralised."

The recent @aave drama is a warning to all DAOs. Main dev and founder re-directed revenue to his own company called Aave Labs instead of AAVE token holders / DAO treasury. He did it without telling anyone. He argues that they own the IP and website/front-end so they can do as they please there. In light of this, the AAVE governance is just smoke and mirrors. Plus, the founder's bio says "CEO @ Aave". Not sure how that is compatible with a DAO unless he is elected to fill such a role. @StaniKulechov any comment? Ideally, all AAVE revenue goes to the DAO treasury and the DAO decides how it is spent. @Marczeller In this case, the "CEO" decided to use the brand and website he owns to redirect AAVE swap revenue to his own company without consulting the DAO. Sounds a lot like what Uniswap did and that didn't end well. Just look at their token price. If the AAVE token wants to avoid this, they need to fix this asap. Otherwise, there's no point to hold AAVE tokens if the founder redirects revenue as he plea

Did Aave Labs quietly redirect millions in swap fees away from the DAO treasury? https://t.co/lwXbsbkZPx $Aave delegate @DeFi_EzR3aL just posted some on-chain research. The following thread breaks down his post 🧵 @Marczeller @StaniKulechov @DeFi_EzR3aL

Aave Just Works: A thread on Dutch Auctions in Aave V4's new liquidation engine. https://t.co/eWfqRgonij

Whether through trying to launch a 2nd token or redirecting value to its own equity, Aave Labs has been deeply parasitic to the Aave DAO. The biggest threat to any token and DAO is a competing, independent equity vehicle. AAVE tokenholders should push back much more aggressively against this long-term risk and support the work being done by @Marczeller.