Krader.eth

@amorfatiace @StaniKulechov $30 next month

@StaniKulechov Update?

Going live with the first public Aave Quarterly Update.

@StaniKulechov Winning

Aave Will Win proposal directs 100% of product-layer revenue to the Aave DAO (similar to protocol revenue), committing Labs to a fully token-centric model. Upon approval, all value will accrue entirely to $AAVE, transitioning Aave to a single-asset model.

I’m tired of winning @StaniKulechov $AAVE

@StaniKulechov Stani when he rugs the $50M

Earlier today, a user attempted to buy AAVE using $50M USDT through the Aave interface. Given the unusually large size of the single order, the Aave interface, like most trading interfaces, warned the user about extraordinary slippage and required confirmation via a checkbox. The user confirmed the warning on their mobile device and proceeded with the swap, accepting the high slippage, which ultimately resulted in receiving only 324 AAVE in return. The transaction could not be moved forward without the user explicitly accepting the risk through the confirmation checkbox. The CoW Swap routers functioned as intended, and the integration followed standard industry practices. However, while the user was able to proceed with the swap, the final outcome was clearly far from optimal. Events like this do occur in DeFi, but the scale of this transaction was significantly larger than what is typically seen in the space. We sympathize with the user and will try to make a contact with the user and we will return $600K in fees collected from the transaction. The key takeaway is that while DeFi should remain open and permissionless, allowing users to perform transactions freely, there are additional guardrails the industry can build to better protect users. Our team will be investigating ways to improve these safeguards going forward.

@StaniKulechov Aave effect

Aave effect.

@CamiRusso @StaniKulechov Ask him about this chart

Interviewing @StaniKulechov in an hour -- what would you ask him?

@StaniKulechov I’m tired of winning @aave @Morpho @StaniKulechov @AaveChan

@StaniKulechov $AAVE token all time low

Aave recorded an all-time high in monthly active users.

Excellent overview on how Aave V4's dynamic liquidations work. Worth reading.

@lordjorx @bgdlabs @AaveChan Stani when he sees more exit liquidity for $AAVE

Why I’m not selling my AAVE yet. I’ve been talking about the internal governance drama at AAVE for days. The loss of @bgdlabs and @AaveChan is a hit, no doubt. But here is why I’m finding it impossible to sell: the machine just keeps working. If you look at the TVL and market share, nothing has changed. In fact, AAVE is still growing its dominance. Users still trust the protocol regardless of the noise. Even more interesting is what’s happening on-chain. The top 100 addresses aren't selling, in fact they are accumulating. AAVE tokens are consistently leaving exchanges too. I’ve seen people suggesting a pivot to Morpho. Sure, it’s an option, but it’s not token-aligned. They don't seem to care about the token holders, and the power concentration is even worse. In Morpho, the top 100 addresses control 92% of the supply. In AAVE, that number is only 36%. I’m not holding AAVE because I believe in "pure decentralization", we all know that barely exists in DeFi yet. I’m holding because the whales are staying and the tech works. Until the V4 launch or the new App gives me a technical reason to leave, I’m not going anywhere.

As part of building in public, Aave Labs is sharing our approach to smart contract security for Aave V4 with the broader DeFi community.

AAVE is winning big time. Thanks @StaniKulechov @aave @Morpho

I’m so tired of winning boss @StaniKulechov @aave

@chilla_ct @aave How about scenario 3 AAVE token goes to $0.00 and @StaniKulechov IPO’s AAVE on the NASDAQ

The Aave Lindy Effect is gone. And John Galt might be a fitting reference. @aave's TVL is holding up at $26B, basically unchanged despite the shocks caused by the DAO controversy. This is not surprising, as open positions don't get closed over forum drama, and liquidity is extremely sticky in the short term. But this might primarily be a sign of inertia. The market hasn't likely priced in yet the whole operational impact of losing @bgdlabs and @Marczeller's ACI. The real consequences will likely unfold in the coming months, or years, rather than a few days. So here are some potential scenarios, including a wild-card fork. --- Scenario 1: Aave stays on top Aave's moat isn't the code (which is open source), but the Lindy Effect and the brand. The roadmap is strong, with a focus on V4, Horizon, and mobile apps. Aave could therefore emerge stronger. Though it's not easy to imagine execution as good as before, from both technical and go-to-market points of view, given the main players are no longer there. --- Scenario 2: Aave loses market share If V4 keeps getting delayed or technical issues surface without the team consistently fixing them, the window for competitors gets wider. @Morpho might be the strongest threat. It doesn't compete on retail liquidity but builds infrastructure that other protocols build on top of. For instance, @SeamlessFi migrated all its liquidity away from an Aave V3 infrastructure fork and onto Morpho, @coinbase built its Bitcoin lending product on top of Morpho, and Apollo started a 48-month plan to acquire up to 9% of the token supply, while @compoundfinance has already been building on top of Morpho. And each new integration brings more trust at the institutional level, which is the protocol's primary target. And then we have @0xfluid , which plays a different game, focusing on user-oriented features, such as liquidation penalties of 50/100x less expensive than Aave and 39x leverage on stablecoin LPs, as well as integrations with @jup_dao and other projects to reach more users. Furthermore, Fluid has already proposed a clean separation between Foundation and DAO, apparently learning from exactly the kind of conflict that are unfolding at Aave. It's therefore natural to imagine a situation where every (potential) dollar of TVL lost by Aave might go between Morpho as institutional infrastructure and Fluid as layer for DeFi-native users. --- Finally, a potential Aave fork by the stakeholders involved might actually make sense. bdg knows the codebase better than anyone, and ACI has the go-to-market knowledge and governance infra. Also, although this is just an hypothetical theory, it's worth noting that Zeller opened his departure post with "Who is John Galt?", which is a quote from Ayn Rand's Atlas Shrugged, where Galt is the productive genius who, tired of seeing his work exploited by a corrupt system, disappears and builds an alternative society with everyone else who walked away. This doesn't seem to be the kind of quote you choose when you're retiring.

@david_seroy @aave Wrong. Aave as a protocol with thrive. But $AAVE token will be trading under $10 in the near future.

Change my mind: @aave will… lose. Not because RWAs aren’t large. Not because Aave V4 isn’t great engineering. But because it lacks apex collateral. Credit is hierarchical, not flat. In every mature system, liquidity converges around one apex asset, the collateral that gets the absolute best funding terms. In TradFi, that’s Treasuries in repo. Everything else prices downstream of that base. If you want to win credit markets, you don’t fund a long tail of heterogeneous collateral objects. You acquire (or manufacture) the apex collateral and become the dominant financing engine for it. There is no real second place. A premium accrues to the best. @StaniKulechov is actually circling the right idea with yield-bearing stablecoins (YBS). That’s an attempt to manufacture collateral -> securitize yield, wrap it, and use it as a funding base. Simple version: • off-chain cashflows (T-bills, basis trades, GPUs) • wrapped into a yield-bearing stablecoin • posted as collateral That’s collateral manufacturing. The problem is most of these are structurally weak in the context of apex collateral. At worst, they’re opaque balance sheets tied to high-risk investments. At best, they’re off-chain legal claims, jurisdiction-bound, censorable, discretionary. That will never be apex collateral. So what is the cleanest thing we actually know onchain? Lending dollars against BTC or ETH, overcollateralized, programmatically liquidated, fully transparent. That structure gives you: • deterministic enforcement • no legal dependency • continuous price discovery • deep liquidation markets Wrap that into a standardized, overcollateralized yield-bearing claim and now you’re much closer to something that can compete for apex status, without tokenizing off-chain securities. Here’s Aave’s structural issue: It can’t manufacture that object in isolation. When you deposit USDT into Aave, you receive aUSDT, a pro-rata claim on pooled liquidity extended across all governance-approved collateral configurations for that market. Spokes and caps limit blast radius, but your capital still funds a governance-curated collateral universe. There is no “aUSDT-BTC only” primitive. There is no mechanism to isolate capital exclusively into a single, standardized, governance-minimized collateral object competing for apex status. You are opting into a funding system. You are not participating in a collateral manufacturing process. Second constraint: term structure. Aave is primarily floating-rate. That’s great for low-cost borrowing, but limited for building high-quality yield-bearing collateral. Introduce fixed maturity and you can earn more than overnight funding without new counterparty risk. You’re being paid for time, not for trusting worse borrowers. That’s structural yield, not risk yield. Aave doesn’t natively provide that manufacturing layer for fixed maturities today. Maybe fixed maturity can be added via a spoke in the future. But when liquidity ultimately routes through a single hub, it becomes structurally difficult to create fully isolated collateral objects that compete independently for apex status. Aave optimizes capital allocation across assets. It does not optimize the creation of a single dominant collateral primitive. Compare that to a model like @Morpho V2, where curators can compete to assemble standardized, overcollateralized BTC-backed claims with different maturity mixes and liquidity profiles. Example: • 20% overnight • 50% 6-month • 30% 12-month • exclusively BTC-backed The composability and modular approach creates a kind of ruthless competition between vault curators which starts to look like a modern free-banking era — vaults competing to build the cleanest, most financeable collateral object. And make no mistake, we're already seeing this across our industry. The race is already on to find the best apex collateral: • Aave: tokenize off-chain securities (nuclear, solar, space, data centers). • Maple: tokenize institutional credit. • MicroStrategy: structured balance-sheet exposure (STRC, STRV, STRK, STRD). Everyone is competing to bring their collateral onchain and make it the apex collateral, because a premium accrues to the king. The prize is lower borrowing costs and structural dominance. For the last 50 years, the U.S. government owned that prize with Treasuries, the true exorbitant privilege. The race is on for the next heir to the collateral throne. Whoever manufactures the most financeable collateral sits at the top of the hierarchy. And in credit markets, that position compounds.

@burstingbagel Stani when he hears this:

Aave is a good buy here

Two protocols generate 69% of all crypto holder revenue. The rest of the “investible” market is embarrassingly small. I put together a list of 132 tokens across 12 narratives that might survive the bear market. Read it here: ignasdefi.com/p/the-investib…

@StaniKulechov Stani when he rugs $AAVE holders to buy another $30M mansion

Aave App will onboard the next million users into DeFi.

Over the past seven years, Marc has been one of the most active voices in Aave ecosystem. Through the Aave Chan Initiative, he helped shape incentive programs, contributed to the protocol's growth, and played a role in the DAO’s evolution. His impact on the community is well documented and widely felt. The protocol continues to operate as normal and incentive programs are unaffected. Aave Labs will work with the DAO’s other service providers to make sure this transition is smooth for the community. We thank Marc for everything he has contributed and wish him well.

@CryptoMichNL Where is the bounce

A fast bounce upwards for $AAVE. The correction yesterday was complete bollocks as it was driven by the fact that Base left $OP. No reason for $AAVE to go down. Now, it's making a higher low, and therefore, for the first time since September '25, it might be starting a new uptrend from here.