RT Naga Avan-Nomayo (@JeSuisNaga)An @aave Labs spokesperson said the firm followed governance rules “exactly as written” when it advanced a major proposal to a Snapshot vote, rejecting claims that the move was rushed or done in bad faith.1/ Aave Labs told The Block that criticism over the timing and escalation of its “[ARFC] AAVE token alignment” proposal is “erroneous,” saying the five-day ARFC discussion period was completed and advancing to Snapshot was fully compliant.2/ Labs stated that efforts to exte ...

SEC closes 4-year long investigation into Aave| Credit: Getty Images. Key Takeaways The SEC closed its 4-year Aave probe on December 16, 2025, with no enforcement action. The investigation examined whether the AAVE token or lending pools were unregistered securities. This marked a significant win for DeFi, signaling a reduction in regulatory pressure in 2025. The United States Securities and Exchange Commission (SEC) has concluded its 4-year long investigation into the decentralized finance protocol ...

AAVE token holder proposes 'poison pill' for DAO to absorb Aave Labs amid contentious revenue debate https://t.co/yOfPkRJPvs ...

Core Insights - Aave DAO is considering a significant update to its token policy, proposing a permanent annual buyback of $50 million for AAVE tokens using protocol revenue [1][2] - The buyback program aims to provide price support for AAVE tokens and is expected to be managed by TokenLogic and the Aave Finance Committee [2][3] - Early community feedback has been largely positive, with Aave founder Stani Kulechov supporting the buyback target increase [4] Proposal Details - The proposed buyback would involve purchasing between $250,000 and $1.75 million weekly, with flexibility based on market conditions and liquidity [1][2] - The program is designed to establish a long-term repurchase strategy funded by the protocol's revenue, which is currently around $169 million annually [2][3] - A Snapshot poll and subsequent on-chain vote will be conducted to implement the policy if the poll is successful [3] Financial Viability - DeFiLlama data indicates that Aave has generated approximately $13.9 million in the past 30 days, supporting the feasibility of a $50 million buyback while covering operational expenses [3] - The upcoming Aave v4 rollout in late 2025 is expected to introduce a new framework for liquidity pooling and risk management, potentially impacting revenue and buyback sustainability [5] Market Reaction - As of the latest update, AAVE was trading around $218, reflecting a 5% decrease for the day, with mixed market reactions to the governance update [4] - Analysts are observing AAVE's price chart, which indicates pressure and challenges in maintaining key support levels [7]

Core Insights - Aave has surpassed $30 billion in total active borrows, marking a significant achievement for the platform [1][2] - The platform has also set new records in deposits and total value locked (TVL), reaching $73.2 billion and $41.85 billion respectively [2] Aave's Growth Trajectory - Aave's market share is increasing due to a multi-chain strategy that integrates lending services across different ecosystems [3] - The recent deployment on the Aptos network represents Aave's first entry into a non-EVM blockchain, expanding its user base [3] Competitive Landscape - Aave has re-established itself as the largest DeFi protocol by TVL after surpassing Lido [4] - The DeFi market is showing bullish signs, with other assets like Hyperliquid's native token reaching new all-time highs [4] AAVE Price Performance - The AAVE token has experienced volatility, peaking over $400 in early 2025 and correcting to below $120 in April, but has since recovered to around $302 [5][6] - The price performance aligns with the protocol's growth and record-breaking deposit volumes [6]

Cryptocurrency Market Reaction - Major cryptocurrencies, including bitcoin (BTC), experienced a rise following the Federal Reserve's 25 basis-point rate cut and indications of further easing by year-end, despite a hawkish tone from Fed Chair Jerome Powell [1] - The CoinDesk 20 Index increased by 3% over 24 hours, with all members showing positive performance [1] Regulatory Developments - The SEC approved "accelerated basis" listing standards for crypto ETFs, reducing approval times from 240 days to approximately 75 days, which is expected to boost listings in the crypto market [2] DeFi Innovations - Aave introduced its V4 roadmap, transitioning to ERC-4626 share accounting, which will maintain the number of tokens while increasing their value over time, enhancing integration and tax treatment [3][4] - AAVE token price rose over 4% in the last 24 hours following this announcement [4] Tokenomics and Valuation Insights - Wormhole, a decentralized blockchain bridge, announced new tokenomics aimed at providing better earning opportunities for governance-active token holders [4] - A popular analysis suggested that Hyperliquid's HYPE token is undervalued, advocating for discounted cash flow (DCF) models due to its unique cash flow dynamics [5]

Risk Management - Holding the token of a frequently used protocol can create double risk, as a hack could lead to loss of deposits and token value decline [1] - Diversification is not achieved by holding the token of a protocol heavily used, as both are vulnerable to the same risks [1] Investment Strategy - Holding the token of a protocol may be more beneficial than depositing if bullish on its growth [2] - The strategy of holding tokens instead of depositing applies to protocols like Aave, Hyperliquid, Pendle, Fluid, and Lido [2]