Aave Rejects Buyout Reports as DeFi Market Share Climbs

Aave founder Stani Kulechov rejected reports that Kraken's parent company, Payward, is negotiating to acquire a 15% stake in Aave Group at a $385 million valuation, arguing the reported price would substantially undervalue the business as the protocol continues to generate strong cash flows.

Summary:

Stani Kulechov denied reports Aave would sell equity at a 70% discount.
Aave generates roughly $134 million in annualized protocol revenue.
Aavenomics 3.0 will introduce an automated AAVE token buyback mechanism.

Kulechov’s response comes as Aave expands its institutional presence through protocol upgrades, growing revenue and new tokenomics designed to return value directly to token holders.

Founder Rejects Acquisition Valuation

Kulechov dismissed reports that Kraken’s parent company, Payward, was in talks to acquire a 15% stake in Aave Group at a valuation of approximately $385 million.

“There is no way we’d sell AAVE at a 70% discount,” Kulechov said, disputing the reported valuation and suggesting it significantly undervalues the protocol’s business fundamentals.

While rejecting the reported deal terms, he acknowledged that Aave Labs continues to hold discussions with institutional participants regarding strategic partnerships and potential purchases of AAVE tokens designed to strengthen long-term ecosystem participation.

Lots of discussions around Aave so I want to clarify a few things:

• First off, there is NO WAY we’d sell AAVE at a 70% discount lol.

• 100% of Aave Protocol and GHO revenue goes to the $AAVE token. This was established in the Aave Will Win proposal.

• AWW also applies to…

— Stani (@StaniKulechov) June 25, 2026

His comments indicate that although Aave remains open to institutional relationships, the reported acquisition details do not reflect the company’s assessment of its value.

Revenue Flows Directly to the DAO

Kulechov also emphasized the distinction between Aave Labs and the Aave protocol itself.

According to the founder, the protocol currently generates approximately $134 million in annualized revenue, with all revenue flowing directly to the Aave DAO rather than Aave Labs.

Under the governance structure introduced through the “Aave Will Win” initiative, revenue generated by the lending protocol, the GHO stablecoin and related ecosystem products accrues to the decentralized treasury. Aave Labs operates as a development company responsible for building and maintaining the protocol but does not retain protocol revenue.

The structure reinforces Aave’s transition toward a governance-led economic model in which token holders ultimately control treasury assets and protocol decisions.

The Shift Toward Fundamental DeFi Valuation

Kulechov’s rejection of the reported $385 million valuation reflects a broader shift in how decentralized protocols are being appraised by institutional observers. Unlike early-stage DeFi growth phases that relied on speculative token emissions, the current market environment is increasingly favoring protocols that demonstrate sustainable, protocol-level cash flows. By generating approximately $134 million in annualized revenue – all of which is directed to the DAO treasury rather than private shareholders – Aave is effectively positioning itself as a yield-bearing infrastructure utility.

This trend of valuing DeFi platforms through discounted cash flow (DCF) models, as recently exemplified by Standard Chartered’s formal research coverage, indicates that the market is beginning to treat protocols like Aave with the same rigorous financial scrutiny applied to traditional SaaS or fintech enterprises.

Aavenomics 3.0 Targets Long-Term Value

A key part of Aave’s next growth phase is the planned rollout of Aavenomics 3.0.

The proposal introduces an automated, rules-based AAVE buyback mechanism that would periodically purchase tokens using protocol-generated revenue. Unlike discretionary buybacks, the system would operate automatically under predefined governance parameters.

Supporters argue the model could strengthen long-term token economics by linking protocol revenue directly to token demand while reducing reliance on governance votes for capital allocation.

The proposal remains under development and will require community approval before implementation.

Institutional Interest Continues to Grow

The clarification comes as institutional interest in decentralized finance continues to accelerate. Earlier this week, Standard Chartered initiated research coverage of AAVE, applying a discounted cash flow model more commonly used to value traditional financial companies. The bank based its long-term outlook on recurring protocol revenue rather than speculative token demand, underscoring a growing willingness among institutional analysts to value DeFi protocols as cash-generating financial infrastructure.

At the same time, Aave continues expanding its technology stack through the rollout of Aave V4, whose modular architecture is designed to improve liquidity efficiency and support tokenized real-world assets. The protocol has reported strong early adoption of the upgrade, reinforcing its position as the largest lending platform in decentralized finance.

That leadership is reflected in market share. According to Token Terminal data shared by Aave, the protocol now accounts for 46.7% of all active DeFi lending, giving it the largest share of the sector by active lending activity. The milestone highlights continued consolidation around established protocols with deep liquidity, audited infrastructure and proven track records.

BREAKING: Aave now holds 46.7% of active DeFi lending. pic.twitter.com/DIwhApKJYw

— MSB Intel (@MSBIntel) June 25, 2026

Taken together, the protocol’s expanding market dominance, approximately $134 million in annualized revenue, and upcoming Aavenomics 3.0 buyback mechanism provide additional context for Kulechov’s rejection of the reported valuation. As DeFi matures, founders and institutional investors are increasingly evaluating protocols based on sustainable cash flows, governance structures and long-term network fundamentals rather than short-term token price movements.

The information presented in this article is intended for informational purposes only and should not be interpreted as financial, investment, or trading advice. Coinspress.com does not promote or advocate for any particular investment strategy, asset, or cryptocurrency project. Cryptocurrency markets are highly volatile and unpredictable – always perform your own research and seek guidance from a qualified financial professional before making any investment decisions.

Author

Alexander Stefanov

Reporter at CoinsPress

Alex is Editor-in-Chief of Coinspress and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.