what's aave?
Aave is a leading DeFi crypto lending protocol with over $50 billion in net deposits and a market cap of $4.07B. The project generated over $90M in fees during September 2025, setting pace for a monthly all-time high, though only $12M stayed with the protocol. Active USDC loans have surged 150% since the start of the year, helping Aave maintain its leadership position in active loans within the DeFi space. The protocol is preparing to launch its V4 update by the end of 2025, promising a major transformation of the ecosystem. Aave has achieved significant growth on the Plasma network, reaching $5.5B market size in just 3 days and representing 81% of Plasma's total activity. The platform continues to expand with new features including liquidity incentives through Aave Arc and lower interest rates to attract more users.
Aave Labs is hiring, TVL doubled, native BTC borrowing, and revenue distribution to token holders.
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Aave Labs is hiring for three positions: Partner Solutions Architect in London or New York, Staff DevOps Engineer remote in Australia/New Zealand/Singapore, and Staff React Native Engineer remote in the United States.
Proposes revenue distribution to token holders.
Market cap and holder count increased approximately 200% over the past year (from January 2025 to January 2026).
TVL doubled from January 2025 to January 2026.
Mentioned as an example of a DeFi application that banks could integrate with tokenized deposits for future composability, in context of GENIUS Act discussion.
partnered with Babylon Labs to build the first native BTC-borrowing on Aave v4, enabling BTC lending and borrowing without wrappers and bridges
Listed as a spot trading asset on Lighter exchange alongside UNI, LINK, SKY, and LDO.
Partnered with CoW DAO in 2025 to enable smoother trading across DeFi.
$1 billion USDT was withdrawn from Aave on Ethereum and moved to HTX Global on the Tron chain.
Mentioned as a DeFi protocol that can be used anonymously through RAILGUN_Project's EVM privacy layer.
Queued PT-USDe and PT-sUSDe (April 2026 maturity) markets from Pendle for execution on Aave on Plasma on 2026-01-07.
Reduced token emissions via the Umbrella upgrade.
A compromised multisig wallet withdrew 1,000 ETH ($3.24M) from Aave as part of a $27.3M exploit, with the attacker still holding a $9.75M leveraged long position on the platform ($20.5M in ETH against $10.7M in DAI).
Boosting yields for verified humans on SelfProtocol with 10-12% APY on WETH and USDT.
ETH deposited on Ethereum mainnet reached an all-time high.
Plans to launch Aave App targeting mainstream adoption of DeFi savings features in 2026.
Joined the Ethereum Protocol Advocacy Alliance in 2025 alongside Uniswap, Lido Finance, Curve Finance, Aragon Project, and Spark, a coalition of protocols powering over $100 billion in onchain assets focused on policy advocacy.
RLUSD lending market is live on Aave core on Ethereum with 5% APR.
Reached $87 billion in trading volume during 2025, starting from $2.5 million average daily volume on January 1st, 2025.
Bitwise submitted an application to the U.S. SEC for a Bitwise AAVE Strategy ETF on December 30, 2025.
Deposited 8,900 AAVE tokens (approximately $1.34M) into Coinbase Prime on December 29, 2025
ParaFi transferred approximately $30 million worth of AAVE tokens (representing 1% of total supply) to Coinbase on December 27, 2025.
Enabled E-Mode for wrsETH and WETH on Aave v3 Base market, increasing LTV and capital efficiency for looping strategies.
Winslow Strong withdrew 307 CBBTC ($27.03M) and 1,900 ETH ($5.6M) from Aave on 2025-12-25.
Gross revenue increased 50% year-over-year compared to Q4 2024, showing steady growth trend driven by borrow demand and liquidations.
Captures more interest fee revenue per unit of deployed TVL than vaults built on top of it, including strategies run by Etherfi, Fluid, Mellow, and Treehouse.
Listed as a featured trading pair on GainsNetwork with up to 250x leverage and a 50% fee discount running from December 24, 2025 through December 31, 2025.
Partnered with a protocol to launch trustless vaults for a lending use case at the end of 2025.
Stani Kulechov purchased approximately 84,000 AAVE tokens worth $12.6 million during the week ending December 24, 2025.
Borrowing volume decreased approximately 70% since August 2025.
Token fell 18% over the week ending December 24, 2025, marking the worst performance among the top 100 cryptocurrencies.
A wallet potentially belonging to Ethena withdrew 26,800 AAVE tokens ($4.03M) and deposited 17,900 AAVE tokens ($2.68M) into Binance and Bybit on December 22, 2025.
A major holder sold 230,350 AAVE tokens worth $38 million for 227.8 WBTC and 5,869.4 stETH on December 22, 2025, resulting in a 12% price drop from $176 to $156.
Featured as a topic in the Uneasy Money podcast episode discussing DAO ownership and governance structure.
Uses Chaos Oracles for price feed infrastructure, which secured over $350B in transaction volume and $21B in value across integrated DeFi protocols in 2025.
GHO stablecoin reached 350 million circulating supply, a new all-time high.
Fully abstracts away the blockchain layer in consumer experience according to industry commentary on DeFi application design.
A DeFi user lost $563,000 while withdrawing funds from Aave after granting a malicious token permission that allowed an attacker-controlled address to transfer the user's aEthUSDT before approvals could be revoked.
DeFi integrations with Aave are coming to Aptos ecosystem.
Demonstrated native interaction with Ethereum DeFi through ZKsync Interop for ZK Chains.
SEC concluded its four-year investigation into Aave with no enforcement action taken.
Aave V4 announcement expands the protocol from pooled money markets to full lending infrastructure using a "one balance sheet, many markets" approach that removes liquidity fragmentation while maintaining risk isolation.
Protocol executes buybacks from revenue every six hours for many months, with amounts potentially increasing based on DAO's protection of brand assets, IP, and distribution domains monetization.
CoW Swap integration redirects ~$200K/week in swap fee revenue from DAO to Labs according to analysis, sparking governance concerns as founder defends Labs' monetization rights. A whale purchases $5.67M worth of tokens.
The founder purchases $10 million worth of tokens using TWAP strategy.
Aave introduces 25 bps frontend fee on stablecoin swaps. CoinShares reports $5.9 million in investment product inflows over the past week.
Current yield reaches 4%, while competitor USDe suffers market cap decline despite offering 4.3% yield.
A governance dispute escalates between Aave DAO and Aave Labs over control and resource allocation issues, reaching what is described as a breaking point.
Horizon becomes the largest RWA (Real World Assets) market in DeFi, with expansion of tokenized assets on the platform.
Arbitrum becomes the largest Layer 2 market on Aave with over $2 billion in total market size reflecting active borrowing and lending activity. The protocol receives a nomination as Crypto Project of the Year 2025.
mETH Protocol uses Aave-based liquidity routing for larger ETH redemption flows and lists Aave as part of its DeFi composability infrastructure alongside Ethena, EigenLayer and Symbiotic.
Aave integration with Syrup (Maple Finance) is underway, with growth expected in lending market share and addition of yield generating strategies including basis trade and stablecoin arbitrage.
The V4 security contest closes in 2.5 weeks, marking the final review stage before the protocol launches on mainnet.
Platform identified as biggest winner in DeFi for the week, leading the sector with Meteora.
DAO members dispute with Aave Labs over CoW Swap fee revenue allocation, questioning why fees flow to the company instead of DAO treasury. Whale borrows $750M USDT from the platform using 2x leverage with ETH collateral, accumulating 528K ETH worth $17.23B.
A whale borrows 85M USDT from the platform over the past 8 hours to purchase 38,576 ETH worth $119.3M on Binance during the market decline.
Platform ranks third by revenue generation among top crypto projects, experiencing 9.5% price decline over past 30 days.
Platform reached $75B in peak deposits and absorbed $8.5B in Ethena collateral, approximately 50% via rehypothecated Pendle PTs. Version 4 introduces modular, crosschain liquidity architecture.
Aave Labs and Aave DAO are in conflict over mismatched expectations, with the DAO actively pushing back against the Labs team.
Zeller oversees the protocol's credit committee governance structure, cited as the reason for maintaining the #1 position in DeFi in 2025.
Platform reaches $50 billion in deposits milestone according to founder Stani Kulechov.
Cowswap integration came after Aave Labs was paid with a grant, then redirected user fees to itself. Mobile app launches as Aave Labs product, while v4 and Horizon market revenue goes to Labs not DAO.
Aave Labs tried to launch a second token and redirect value to its equity, intensifying governance tensions with the DAO beyond the previously reported revenue flow dispute.
Aave ranks among the top crypto performers this week, grouped in the yield and on-chain income narrative category alongside Sky, MGC, and Insurance protocols.
Dispute between Aave Labs and Aave DAO centers on where revenue should flow - to DAO or other entities. AAVE token ranks among top swaps on MetaMask this week.
V4 security contest now in full public phase with 310,000 USDC prize pool, open to anyone during holiday season.
V4 codebase enters open security review phase on Sherlock DeFi platform, inviting auditors familiar with lending-pool mechanics to participate.
MetaMask USD is now available for supply and borrow on Aave's Ethereum and Linea markets.
Proposal submitted to support stcUSD and cUSD as assets on MegaETH deployment.
Maple assets on Aave reach $600M+ in total deposits across Ethereum and Plasma networks in less than two months. Supply cap raised on XAUT (Tether Gold), enabling 3x leveraged gold trading on Ethereum.
Aave Chan Initiative formally accuses Aave Labs of diverting DAO revenues and privatizing protocol economics, demanding transparency on CowSwap integration, Vault fees, Horizon deals, and V4 liquidation engine incentives. OKX Earn launches promotional campaign offering 100K GHO rewards for deposits into GHO Savings Vault through January 11, 2026.
Aave implemented 15-25 basis point fees on swaps following CowSwap integration, but the generated revenues do not flow to Aave DAO.
Aave introduces "Future Mode" feature in their app, enabling users to visualize and forecast deposit growth over 1, 5, or more years with real-time projections before committing funds.
Plasma network ranks as the 2nd largest Aave instance despite a 95% incentive reduction and has been the fastest growing top 10 chain in TVL over the last month. Whale 0xE9D0 borrowed 1M USDC to purchase 5,211 AAVE, now holding 338,544 AAVE ($69.08M) with $30.8M USDC debt.
Aave publishes details on V4's new liquidation engine and has processed over $3.3B in cumulative liquidations since launch. Generated $14.4M in fees last week, ranking second among DeFi protocols.
Aave V4 integrates with Babylon to support bBTC as collateral, allowing aggregated Bitcoin variants including native BTC, LSTs, and cross-chain versions to be used in the protocol.
Tangem wallet completes integration with Aave, enabling users to earn yield by supplying stablecoins to liquidity pools through Tangem's Yield Mode feature.
Aave V3 currently holds approximately $55B in TVL. Extra rewards in sGHO and FLUID have been distributed to historical holders of the GHO Pendle LP on Stake DAO.
Supply cap for XAU₮ increased to $25m, with yield activation planned for the yoGOLD product.
Kraken and Ink's Tydro platform operates as a whitelabeled instance of Aave's infrastructure for onchain lending and borrowing.
Integration with Maple Finance completed. PT-sUSDe supply caps raised to $480m with yields around 24% APY at max leverage.
Aave v3.6 nears release with plans to onboard $stLINK from Staked with an LTV of 0% and two E-mode configurations.
Protocol upgrade introduces enhanced emode configuration in Aave V3, enabling assets with LTV0 but specific collateral/debt pairs, removing isolation mode drawbacks while allowing more asset onboarding.
Aave Horizon reaches $550M as RWA lending surges, while hundreds of thousands of Latin American users earn interest through stablecoins on the platform.
Aave App launches Future Mode feature that enables users to forecast savings projections across multiple time periods including one year, five years, and beyond.
Aave deprecates UNI, LINK, and ARB assets from its platform.
LlamaRisk publishes portfolio analysis examining GHO's backing and Real World Asset (RWA) integration.
TVL reaches $33.6 billion, maintaining the #1 position among lending protocols in a sector that has grown to $65.59 billion total value locked across all lenders.
Partnership with CoW Protocol confirmed with deployment to Linea blockchain. Latin American partnerships established with Lemon, Ripio, Buenbit, and Belo for stablecoin adoption in the region.
AAVE takes #1 spot in DeFi TVL rankings from Lido, climbing from #2 position according to DefiLlama data comparing December 2024 to December 2025.
v3.6 protocol update reaches governance proposal stage with complete documentation published on the DAO forum.
Aave V4 launch announced as "coming soon" according to Nader's explanation. New maturities for Ethena's USDe and sUSDe go live with deep liquidity support on Aave for $1M+ margin posting.
MegaETH MEGA token TGE scheduled for March 2026, with mainnet launching January 2026 and two-month incentive seasons, according to AAVE's DAO deployment proposal.
AAVE deployment on MegaETH mainnet day one confirmed, featuring liquidity provider incentive programs and $MEGA token unlocks tied to AAVE performance metrics on the chain.
LlamaRisk releases new report on Aave Horizon showing growing demand for borrowing against RWAs, with Superstate's USCC becoming the largest RWA asset on the platform.
Supply cap for wrsETH increased to 20k on the v3 Avalanche market after rapid demand filled previous caps. V4 protocol update enables builders to directly access idle liquidity with custom risk parameters.
USDC deposits reach $5.5B, up from $1B in January 2024. Aave on Arbitrum records 470k+ transactions and 76k+ daily active addresses year-to-date.
Aave is the only DeFi protocol excluding LST/LRT protocols with $10B+ TVL after the recent market correction.
Aave operates a permanent $50M buyback program for AAVE tokens.