Key Highlights
- Aave proposes directing 100% of product-layer revenue to the Aave DAO treasury.
- Aave V4 introduces new monetization “spokes” with estimated additional annual revenue opportunities.
- Aave Labs signals support for regulated $AAVE futures and a potential exchange-traded product (ETP).
Aave, one of the largest lending protocols in decentralized finance, has introduced a new governance proposal titled the “Aave Will Win Framework.” The plan aims to send 100% of revenue generated from Aave-branded products directly to the Aave DAO treasury.
The proposal, announced on Friday, is currently in the temp-check stage on Aave’s governance forum.
Aave holds one of the biggest market shares in DeFi lending and generates over $100 million in annualized protocol revenue through V3. However, product-layer income, such as interface fees, has operated differently. This proposal aims to fully align those flows.
If approved, revenue from the following Aave-branded products would be directed to the DAO:
- aave.com interface (including swap integration fees)
- Aave mobile app
- Aave Card
- Aave Pro (V4 interface)
- Aave Kit (enterprise tooling)
- Aave Horizon (RWA and institutional market)
- Potential $AAVE exchange-traded product (ETP)
According to Aave founder Stani Kulechov, the framework expands the DAO’s revenue base beyond what was originally established.
He added, “The Aave Will Win Framework expands Aave DAO’s revenue base beyond protocol revenue established by AIP-1 to include non-protocol and off-chain revenue, materially increasing the DAO’s capacity to grow its treasury.”
The swap integration on aave.com alone currently generates approximately $10 million in annualized revenue, which would be redirected to the DAO treasury.
Aave V4 and new revenue features
Moreover, the proposal pushes for ratification of Aave V4 as the protocol’s next major upgrade. While V3 has performed strongly, the framework argues that V4’s new architecture allows more flexible growth.
Planned revenue features under V4 include:
- Fixed-rate lending
- OTC lending for larger borrowers
- Debt trading markets
- LP positions as collateral
- A reinvestment module for idle liquidity
The revenue numbers mentioned in the proposal are estimates based on industry comparisons and market size. They are not guaranteed outcomes. As with V3, 100% of V4 protocol revenue would go to the DAO.
Aave V4 introduces a reinvestment module designed to deploy unused stablecoin liquidity into low-risk yield opportunities approved by governance. The proposal references SOFR-based comparisons to show potential upside from better capital efficiency. However, outcomes would depend on adoption, execution, and broader market conditions.
The framework also mentions expanding access to $AAVE in traditional markets. This includes potential support for regulated $AAVE futures as well as for a regulated spot exchange-traded product (ETP).
If pursued, this would follow a separate governance proposal. The move could broaden access for institutional investors, especially in jurisdictions where regulated crypto products are gaining traction.
Kulechov also said that “Our goal is to achieve all of this with value accruing to one place: the $AAVE token.”
Also Read: Aave Records $450M in Liquidations as DeFi Absorbs Market Crash
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