Headline: Aave founder denies reports of a steeply discounted AAVE sale to Kraken, clarifies revenue and governance picture
Aave founder Stani Kulechov has pushed back on media reports that the protocol would sell AAVE tokens to Kraken at a roughly 70% discount, while confirming that talks with strategic partners have taken place.
What sparked the headlines
A recent report said Kraken was in advanced negotiations to invest 35,000 ETH in exchange for 250,000 AAVE tokens plus a 15% equity stake in Aave Group — a package the story valued at about $71 million and which implied an Aave Group valuation of roughly $385 million. That framing suggested a fire-sale price for AAVE, which Kulechov explicitly rejected.
Kulechov’s response
On social channels Kulechov called the “70% discount” characterization inaccurate — “NO WAY we’d sell AAVE at a 70% discount lol,” he wrote — and clarified the substance of ongoing conversations. He acknowledged interest from various market participants in buying an allocation of AAVE that Aave Labs holds, but stressed those are being discussed as part of deeper, long-term strategic partnerships rather than a discounted token dump.
Labs vs. DAO — who controls what
Kulechov used the moment to reiterate the separation between Aave Labs (the development company) and the Aave DAO (the governing body). Under the recently approved “Aave Will Win” governance changes, 100% of revenue from the Aave Protocol and the GHO stablecoin flows to the AAVE token via the DAO. That revenue framework now also covers income from Aave App, Aave Pro, and swap-related products. Aave Labs does not appropriate protocol or product revenue; it receives funding that the DAO approves to continue development.
Financials and IP ownership
Kulechov stated that Aave is generating about $134 million in annualized revenue and that these proceeds accrue to the DAO and ultimately benefit AAVE token economics. He also said the Aave brand, protocol software, and related IP created for the ecosystem now belong to AAVE under the updated governance model.
Aavenomics 3.0 and buybacks
Kulechov revealed the team is designing “Aavenomics 3.0,” which will introduce an automated, non-discretionary buyback mechanism for AAVE. He did not provide a launch timeline, funding source, or expected program size. Aave already runs a buyback program funded by excess protocol revenue; the new design appears intended to automate repurchases rather than relying on ad-hoc governance actions.
Strategic expansion and valuation context
Beyond on-chain lending, Kulechov said Aave is focusing more on tokenized real-world assets and other financial products — a strategic direction echoed in recent industry research. Grayscale Research, cited by crypto.news last week, used a cash-flow valuation model to argue AAVE looks undervalued at current prices. Grayscale estimated roughly $60 million in revenue for 2026 and placed a current fair-value range for AAVE at $80–$100 using a 20x–25x fintech multiple. It further suggested that a fair value near $175 could be possible within a year if regulatory clarity accelerates tokenized asset adoption; Grayscale emphasized those are model-based scenarios, not guaranteed price targets.
Market reaction
Following Kulechov’s remarks, AAVE rose to an intraday high of $87.50 before settling near $82. The token has also been buoyed in the background by Standard Chartered’s long-term price projection — a headline $3,500 target for the end of 2030 — which continues to support bullish narratives around AAVE’s future upside.
Bottom line
Kulechov denies any cheap-sale characterization of discussions with Kraken or other partners, while confirming active strategic dialogue and reiterating that protocol revenues and governance now flow to AAVE via the DAO. Investors and observers will be watching for more details on any partnership terms and the rollout of Aavenomics 3.0.
Read more AI-generated news on: undefined/news
