On February 3, 2026, Aave Labs announced it is sunsetting the Avara umbrella brand, which previously housed non-DeFi projects like the Lens social protocol (sold to Mask) and the Family wallet, now being wound down, per The Block. Stani Kulechov, Aave co-founder, stated all products, including the Aave mobile app, Aave Pro, and Aave Kit, will operate under Aave Labs, simplifying branding and concentrating resources on DeFi growth. This move aligns with Aave’s dominance as Ethereum’s leading lending protocol, with $18.2B TVL, per DefiLlama.
The decision follows simmering disputes between Aave Labs and the Aave DAO over protocol control. Aave Labs owns off-chain assets like the aave.com frontend, branding, and IP, while the DAO governs smart contracts and parameters. A December 2024 controversy arose when Aave Labs integrated CoW Swap into the frontend, redirecting fees to a private wallet, sparking accusations of revenue diversion. A community “poison pill” proposal to seize Aave Labs’ IP failed, partly due to Kulechov’s token holdings, per. Kulechov has since proposed sharing non-protocol revenue with AAVE holders.
Aave’s $12.4B market cap and $1.8B daily volume reflect resilience, with AAVE at $312, up 3.2% weekly, per CoinGecko. X posts from @AaveAave praise the refocus on DeFi, while others criticize Kulechov’s £22M London mansion purchase as tone-deaf amid governance debates, per Bloomberg. Aave’s upgraded app offers 9% yields and $1M insured deposits, aiming for trillions in on-chain activity post-regulatory probes. SEC’s pro-crypto stance under Paul Atkins supports DeFi growth.
Aave Labs’ pivot could drive $30B TVL by year-end, per, but DAO tensions risk fragmentation. Investors should monitor Aave DAO proposals on app.aave.com and AAVE staking yields (8–12% APY), per. Dollar-cost average into AAVE with stop-losses below $280, or diversify into ETH ($4,070), per TradingView. Follow @StaniKulechov on X for updates. Aave’s DeFi refocus positions it for institutional inflows, potentially hitting $500 by 2026, Techopedia.
