Stani Kulechov Denies Aave Sale at Discounted Valuation
On Friday, June 26, Stani Kulechov, the founder of the decentralized lending protocol Aave, expressed strong disbelief in a report suggesting that Aave might be sold at a fraction of its current market valuation. His response highlights a broader trend where larger decentralized finance (DeFi) protocols are resisting acquisition offers at discounted prices, even as traditional finance companies look to enter the onchain ecosystem through acquisitions.
The report in question originated from claims that Payward, the parent company of Kraken, had been negotiating to acquire a 15% equity stake in Aave for $385 million. This would value Aave at approximately 30% of AAVE’s fully diluted token valuation of around $1.32 billion, according to data from DefiLlama.
Kulechov responded with a clear and emphatic denial on X, stating, “First off, there is NO WAY we’d sell AAVE at a 70% discount lol.”
Aave Labs’ Token Allocation and Governance Structure
While Kulechov did not completely rule out the possibility of Aave Labs, the for-profit development company behind the Aave protocol, selling a portion of its AAVE token allocation, he emphasized that the way the issue was presented was inaccurate. He noted that several market participants have discussed buying AAVE tokens, either directly or indirectly, as part of a broader long-term partnership with Aave.
However, it is important to understand that Aave Labs has its own separate allocation of AAVE tokens. If Aave Labs were to sell tokens from its allocation, it would be an internal treasury transaction rather than a protocol-level decision. This means that such a sale would not automatically grant control over the Aave DAO or redirect protocol revenue to the buyer.
Aave’s Revenue Model and Valuation Debate
According to Kulechov, Aave’s strong financial position is a key reason for rejecting a significant discount. He mentioned that Aave generates about $134 million in annualized revenue and is working on Aavenomics 3.0, which includes a new automated and non-discretionary buyback mechanism.
Aave’s revenue structure was formalized through the Aave Will Win framework, which proposed directing revenue from Aave-branded products to the DAO treasury and setting a one-year development budget. The DAO approved a $25 million stablecoin grant and 75,000 AAVE token allocation for Aave Labs under this framework.
As of the time of the debate, Aave had a fully diluted valuation of approximately $1.32 billion, with AAVE trading near $82.49. The same dashboard also tracks the protocol’s TVL, fees, revenue, active loans, and treasury metrics.
Kulechov’s preview of Aavenomics 3.0 aims to reinforce the idea that token-holder value will come from protocol economics rather than a discounted sale to an outside buyer. However, the full details of the new buyback mechanism have not yet been released.
Kraken’s Interest and Aave’s Governance Challenges
The reported interest from Kraken fits into a larger trend where centralized exchanges and fintech firms seek exposure to DeFi infrastructure. Kraken and Aave already have a relationship: Kraken-incubated Layer 2 network Ink launched Tydro, a white-label version of Aave, as its core lending layer.
Aave has described Tydro as an example of how Ink leverages Aave’s infrastructure to launch native lending on Kraken’s Layer 2 network. However, the timing of these developments is complicated by recent governance unrest and pressure following the April Kelp DAO rsETH exploit.
Although Aave was not the original target of the exploit, the incident affected Aave markets because the attacker used unbacked rsETH as collateral, triggering downstream risk across DeFi lending venues.
At least three high-profile DAO service providers have also left or announced plans to depart. The Aave Chan Initiative said it would wind down its work for the protocol after governance disputes, while BGD Labs stated it would stop working with the DAO when its contract ended. Chaos Labs also announced its exit as Aave’s risk manager.
DL News reported that ACI founder Marc Zeller cast 166,200 AAVE against the Aave Will Win proposal, calling it a departure from the accountability standards the DAO had built. BGD Labs cited what it described as insufficient consideration of existing contributors’ expertise when it announced its exit in February.
Kulechov’s refusal to entertain a discounted acquisition, paired with the buyback mechanism preview, reads as an attempt to reassure token holders that the protocol’s value will accrue to them rather than to outside acquirers or insiders.
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