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]

Should you hold the token of the protocol you use the most?Say you are super bullish on Aave. Your stables and collateral are deposited there. You trust it, you believe it is the best, so you also buy $AAVE to get exposure.It feels like using Apple products and then buying Apple stock.But crypto is different.If Aave gets hacked you lose deposits and $AAVE dumps. Double risk. That is not diversification.So maybe if you are a heavy user of a protocol, you should not hold its token.And if you are bullish on gr ...