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Feb 18, 2026
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LONG
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"We want to ensure that we send an extremely strong signal that the value capture is going to the tokencentric model... 100% of that revenue [from Labs products] to the AVA DAO." Historically, value in DeFi protocols was split between the development company (equity) and the DAO (token). Aave Labs is voluntarily forfeiting its revenue streams (including fees from the Aave Card and frontend swaps) to the DAO. This consolidates all economic value into the AAVE token, transforming it from a governance token into a cash-flow generating asset. LONG (Fundamental value accrual shift). The DAO might reject the funding request for Labs ($50M/year), or regulatory scrutiny could increase due to the direct revenue model. |
Unchained (Chopping Block)
Why Aave Labs Is Putting Itself at the Mercy ...
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Feb 18, 2026
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LONG
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"The biggest resources for us what we learned is solar power... being able to fund a lot of solar which is capital expensive but operational cost low... tokenize that asset use as a collateral in a V4." Stani explicitly identifies "Abundance Assets"—specifically Solar and Batteries—as the primary target for Aave V4's RWA expansion. He views these as the future of collateral because they require massive upfront capital (which DeFi can provide) but have low maintenance costs. If Aave integrates these assets, it creates a new, massive liquidity tap for the solar industry. LONG (Second-order effect of DeFi RWA adoption). Regulatory hurdles in tokenizing real-world energy assets; technical failure of the RWA "spokes" in Aave V4. |
Unchained (Chopping Block)
Why Aave Labs Is Putting Itself at the Mercy ...
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Feb 18, 2026
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AVOID
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"Aave is lending stablecoins at 5%... and a lot of decentralized competitors are lending between 7 to 12%... centralized lending basically collapse[d]." DeFi has proven a superior cost structure (lower rates for borrowers) and superior risk management (automated, transparent liquidations vs. opaque centralized balance sheets). Traditional finance and centralized crypto lenders suffer from higher overhead and human error/fraud risk, making them structurally uncompetitive against optimized smart contracts like Aave V4. AVOID (Technological obsolescence). Regulatory crackdowns on DeFi could force users back to traditional/centralized venues despite the higher costs. |
Unchained (Chopping Block)
Why Aave Labs Is Putting Itself at the Mercy ...
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