Connect with us
DAPA Banner

Crypto World

Aave Delegate Slams Aave Labs’ Track Record as Governance Dispute Continues

Published

on

Source: Aave Governance

Aave-Chan Initiative’s Marc Zeller took to the governance forum to criticize Aave Labs in light of its latest funding request.

The dispute between Aave Labs and the Aave DAO appears to be escalating, with DAO delegates ramping up their hostility after Labs’ “Aave Will Win” proposal requested another $51 million in development funding from the DAO.

On Feb 20, delegate BGD Labs announced its intent to halt its work with the DAO due to Labs’ focus on Aave V4 rather than “a very mature and successful V3.” The decision came after Aave Labs co-founder Stani Kulechov stated in the proposal that “Once V4 is mature, V3 parameters should be gradually adjusted to encourage migration, following the same approach used in past version transitions.”

Marc Zeller, the founder of Aave-Chan Initiative (ACI), another service provider to the Aave DAO, called BGD’s impending departure from the DAO a major change and sold a portion of his AAVE holdings.

Advertisement

Today, the feud between the DAO and Labs was cranked up a notch after Zeller published a full audit of Labs’ performance in the Aave governance forum, bashing Aave Labs’ product delivery, profitability, and business development (BD).

Zeller referred to Labs’ standalone products, including Lens Protocol, GHO v1, and Horizon, as “The Product Graveyard,” citing “zero successes.” He went on to point out that even its more successful launches, such as Horizon, which has commanded over $500 million in total value locked (TVL), still resulted in a negative 96% return on investment (ROI), and that Aave’s stablecoin, GHO v1, depegged and had to be rebuilt by BGD and TokenLogic.

Source: Aave Governance
Source: Aave Governance

The report went on to criticize Aave Labs’ BD department, noting that Labs was set to work with prominent entities in DeFi and traditional finance like Coinbase’s Layer 2 Base, World Liberty Financial, Apollo, and Mantle.

Morpho emerged as the most notable competitor in these relationships and now serves as the backend of Coinbase’s decentralized lending product, and recently announced a partnership with $800 billion asset manager Apollo Global Management.

While the relationship between the DAO and Labs continues to crack, Aave remains DeFi’s leading protocol by TVL, accounting for more than 28% of the DeFi market with $27.5 billion across all chains.

Advertisement

Meanwhile, Morpho is the second largest lending protocol and sixth largest in DeFi with $5.8 billion.

Despite Aave’s leading position in terms of TVL and brand recognition, its native AAVE token is trading near multi-year lows at just $122, or a $1.9 billion fully diluted valuation, after reaching as high as $380 in December 2024 and $660 in 2021.

AAVE Chart - CoinGecko
AAVE Chart – CoinGecko

Aave Labs did not respond to The Defiant’s request for comment.

Source link

Advertisement
Continue Reading
Click to comment

You must be logged in to post a comment Login

Leave a Reply

Crypto World

Crypto Firms Call For More DeFi Courses at US Colleges

Published

on

Crypto Firms Call For More DeFi Courses at US Colleges

Twenty-one crypto organizations have signed an open letter urging US colleges to incorporate decentralized finance into their curricula, arguing that there will be massive demand for crypto talent on Wall Street.

“Our purpose with this letter is simple: to respectfully urge higher education institutions across the United States to further integrate digital assets, blockchain, and decentralized finance into their business and legal curricula,” the open letter reads, which was published on Wednesday.

The campaign was spearheaded by decentralized protocol aggregator 1Inch, with signatories including the Solana Policy Institute, Blockchain Association, DeFi Education Fund and crypto platforms like Aave, MyEtherWallet, Delphi Digital and Messari.

While 1Inch acknowledged that DeFi is taught in some schools, it argued that current curricula treat it mostly as theoretical, and that students should gain a more practical understanding of a “critical part of the global financial ecosystem.”

Advertisement

“It is wrong to think, as some do, that DeFi and crypto technologies lack practical uses or are somehow deviant to the public good,” 1Inch said, pointing out that stablecoins eliminate cross-border payment friction, lending protocols offer yield opportunities for investors and tokenized assets enable trading around the clock.

“The theoretical phase is over. Ideas have already become infrastructure.”

In comments to Cointelegraph, 1Inch said it is pushing for more DeFi courses to be taught in the classroom because opportunities have expanded beyond developer roles to those in more business and legal roles.

“It’s no longer just hoodies; it’s suits and ties too,” 1Inch said, noting that Wall Street firms like Goldman Sachs and PwC are on the lookout for crypto talent beyond the tech-savvy programmers.

“The aim is to build on top of these greater DeFi understanding and practical knowledge, not just among the developers of tomorrow but CEOs and CLOs.”

The open letter asks for more “foundational education” in blockchain architecture and DeFi as a core module rather than as an elective course, with the course material touching on everything from automated market makers and liquidity provision to decentralized autonomous organizations and smart contract risks.

Advertisement