Aave Founder Stani Kulechov Denies Kraken Stake Sale at Steep Discount

Report Sparks Debate Over Potential Deal

Reports emerged that Payward, the parent company of Kraken, held discussions to acquire a 15% stake in Aave-related entities. Sources indicated a valuation around $385 million for the transaction, which some viewed as representing a significant discount relative to the fully diluted valuation of the AAVE token.

The proposed terms reportedly included investments in ETH and AAVE tokens alongside equity. Neither party confirmed the details at the time of the initial reporting. Aave operates as one of the leading decentralized lending protocols on Ethereum, with substantial total value locked and ongoing development through Aave Labs.

Kulechov Responds to the Reports

Stani Kulechov, founder of Aave, addressed the claims directly on X. He stated there was no possibility of selling AAVE at a 70% discount. Kulechov noted that Aave Labs holds an allocation of AAVE tokens, and multiple parties had discussed purchasing portions of it as part of longer-term partnerships. He described the original article's framing as inaccurate.

Kulechov emphasized that Aave Labs functions as a service provider to the Aave DAO. Discussions centered on token allocations rather than a direct sale of protocol control or revenue streams.

Revenue Structure and Aave Will Win Framework

Under the Aave Will Win (AWW) governance proposal, approved earlier in 2026 with strong community support, 100% of revenue from the Aave protocol, GHO stablecoin, and branded products flows to the AAVE token and DAO treasury. Kulechov confirmed Aave generates around $134 million in annualized revenue under this model.

Aave Labs receives DAO-approved funding but does not capture protocol revenue directly. This structure aims to align incentives toward token holders.

Aavenomics 3.0 and Future Plans

Kulechov outlined plans for Aavenomics 3.0, which includes a new automated and non-discretionary buyback mechanism for AAVE. This builds on existing discretionary programs. Details remain forthcoming, with expectations of further discussion in upcoming community calls.

The protocol continues development of version 4 features and updated risk frameworks following the April KelpDAO-related incident, which affected deposits but did not compromise Aave's core smart contracts. TVL has stabilized near recent levels after the event.

Existing Ties Between Aave and Kraken

Aave and Kraken maintain operational connections. Kraken's Ink network uses a white-label version of Aave for lending services, sharing revenue back to the protocol. This relationship predates the recent reports and demonstrates established collaboration in decentralized finance infrastructure.

Community calls scheduled in the coming weeks may provide additional updates on partnerships, token economics, and protocol roadmap items.