Aave founder denies Kraken stake talks

Aave founder Stani Kulechov has denied reports that Kraken parent company Payward is in բանակցations to acquire a 15% stake in the decentralized lending protocol at a $385 million valuation. He said the figures do not reflect Aave’s current performance and dismissed the structure of the reported deal.

The rumored valuation would imply a significant markdown from Aave’s fully diluted valuation, but Kulechov argued the protocol’s financials contradict that narrative. He pointed to roughly $134 million in annualized revenue generated by Aave, with proceeds distributed to its decentralized autonomous organization (DAO). External data sources suggest a slightly lower figure of around $123 million, still indicating strong fee generation.

Partnership discussions confirmed, but terms disputed

While rejecting the specifics of the reported deal, Kulechov confirmed that Aave Labs holds AAVE tokens and has been approached by potential buyers interested in long-term partnerships. He stressed, however, that the details circulating publicly are inaccurate.

Payward and Aave already share a working relationship. In the past year, Payward’s blockchain platform Ink launched a white-label implementation of Aave to power its lending infrastructure.

Pressure follows security incident and tvl drop

The speculation emerges after a challenging period for Aave. Total value locked declined following the Kelp DAO incident in April, when a bridge exploiter used the protocol to swap compromised assets.

In response, Aave introduced a revised risk framework aimed at limiting exposure to similar events and preventing broader contagion. The update is part of a broader effort to restore confidence in the protocol’s security model.

Governance changes reshape revenue model

Internal tensions have also shaped Aave’s recent trajectory. Disputes last year over Aave Labs redirecting interface swap fees away from the DAO led to friction with key contributors, including ACI, Chaos Labs, and BGD Labs, some of whom withdrew from active participation.

These issues prompted structural changes. In April, the community approved Kulechov’s “Aave Will Win” proposal with roughly 75% support. The measure redirected all protocol and product revenue to the DAO and token holders, while granting multi-year funding to Aave Labs.

Kulechov said Aave Labs now operates strictly as a service provider, with no direct share of protocol revenue.

Revenue focus and future development

Aave’s strategy is increasingly centered on sustainable income rather than speculative growth. The protocol’s revenue generation has become a key argument against claims of discounted valuations and remains central to its long-term positioning.

The platform also continues to evolve technically. Version four, released in March, introduces a hub-and-spoke architecture designed to improve capital efficiency and expand into areas such as institutional and real-world assets. Despite this, version three remains the dominant deployment, with over $12 billion in total value locked.

Further changes are in development under “Aavenomics 3.0,” which Kulechov said will include an automated, rule-based buyback mechanism for AAVE tokens. The model aims to create a direct link between protocol revenue and token demand in the open market.

Overall, while Kulechov rejected claims of a discounted token sale, his confirmation of ongoing partnership talks indicates continued deal activity — albeit on terms stronger than those suggested by recent reports.