Aave founder Stani Kulechov has firmly rejected allegations that the Aave protocol intends to sell AAVE tokens to Kraken at a substantial discount. Instead, Kulechov confirmed that there is notable interest from external parties looking to acquire an AAVE allocation held by Aave Labs.
This clarification comes in response to reports suggesting that Kraken was negotiating a deal that would involve acquiring a stake linked to Aave, which could include a potential transaction involving AAVE tokens and equity exposure. Speculations indicated a possible offer of a 15% stake at a valuation of $385 million, although neither Aave nor Kraken has substantiated these claims.
Kulechov publicly disputed the assertion of a 70% discount on AAVE tokens, emphasizing that the discussions were centered around long-term strategic partnerships rather than a fire sale of tokens by the protocol.
Kulechov Clarifies the Sale Dynamics
According to the earlier report, Kraken was purportedly in advanced discussions to invest 35,000 ETH for 250,000 AAVE tokens alongside a 15% equity stake in Aave Group, with the transaction potentially valued at around $71 million. Kulechov, however, labeled the framing of these discussions as misleading, affirming that Aave would not part with AAVE tokens at such a significant discount.
He acknowledged that strategic dialogues have indeed occurred, but clarified that various market entities have expressed an interest in acquiring some of the AAVE tokens held by Aave Labs, the entity responsible for developmental support for the Aave DAO.
This distinction is crucial, as Aave Labs functions as the development arm for the Aave DAO, which governs the protocol and its economic structure. Kulechov specified that Aave Labs does not retain or benefit from protocol revenue.
The relationship between Aave and Kraken is not new; back in 2025, the Aave DAO overwhelmingly voted in favor of licensing Aave’s technology to Kraken’s Ink network, which manages a white-label lending market, with revenue generated returning to Aave.
Aave’s Revenue Model and Future Plans
Kulechov outlined that all revenue generated from the Aave Protocol and the GHO stablecoin is channeled to AAVE through the governing Aave DAO. He noted that ongoing revenue streams now include earnings from Aave App, Aave Pro, and various swap-related products, all of which operate under the Aave Will Win governance framework.
According to Kulechov, Aave is currently generating approximately $134 million in annualized revenue, which is funneled to the DAO rather than to Aave Labs. The development company is funded through arrangements sanctioned by the DAO to maintain its efforts in enhancing the protocol.
Moreover, Kulechov revealed that the forthcoming Aavenomics 3.0 is being designed to implement an automated and non-discretionary AAVE buyback mechanism, though he did not disclose specifics regarding its launch date or financial details.
Aave already operates a buyback program that utilizes surplus protocol revenue to procure AAVE tokens. The proposed Aavenomics 3.0 framework aims to streamline this process, removing the need for separate governance votes for each purchase.
Market Response to Kraken Discussions
Following Kulechov’s statements, AAVE experienced a price surge, reaching an intraday high of approximately $87.50 before settling around $82. The token’s value remained elevated over a 24-hour period as traders digested the founder’s denial of the discounted sale, the rumored Kraken deal, and the confirmed buyback plans.
This news emerges as Aave continues its recovery from the April KelpDAO exploit, which resulted in up to $230 million in bad debt, although the protocol’s smart contracts remained secure. The incident has impacted user confidence and contributed to a decline in deposits.
Notably, Grayscale Research recently opined that AAVE is undervalued based on a cash-flow model, estimating its fair value to lie between $80 and $100. They suggested that a valuation near $175 could be achievable within a year, contingent upon the broader adoption of tokenized assets as collateral within the DeFi ecosystem.
