aave

According to The Block, Grayscale has submitted an application to the U.S. Securities and Exchange Commission (SEC) to convert its closed-end AAVE trust into an exchange-traded fund (ETF), intending to list on NYSE Arca.The ETF will charge a 2.5% NAV sponsorship fee and will have Coinbase as the custodian and primary broker.

Aave Labs has initiated a Temp Check proposal to token holders, requesting approximately $50 million in funding in exchange for directing all revenue from Aave-branded products into the Aave DAO treasury.The proposal includes up to $42.5 million in stablecoins ($25 million base grant and $17.5 million milestone rewards) and 75,000 AAVE tokens (approximately $8 million). In return, Aave Labs will allocate 100% of the revenue from all products, including aave.com, the planned Aave Card, and Aave Pro, to the DAO. This proposal has raised concerns within the community about the concentration of voting power. Marc Zeller, founder of the Aave Chan Initiative, pointed out that this funding package represents a significant portion of the DAO treasury and questioned whether the 75,000 AAVE token grant could lead to excessive concentration of voting power, calling for the proposal to be split and for the recipients to disclose their holding addresses.Aave founder Stani Kulechov stated that this move would shift the DAO towards a "token-centric" model, enhancing its ability to fund growth and execute buybacks. The proposal is currently in the opinion-gathering stage.

According to The Block, Aave Labs has proposed a framework proposal to transfer 100% of the revenue from all Aave brand products to the Aave DAO treasury, and to transfer the related trademarks and intellectual property to the newly established Aave Foundation, while requesting funding support from the DAO for its operations.According to the proposal, Aave Labs will forgo all revenue from future business lines such as Aave v3, v4 protocols, aave.com frontend revenue, Aave Card, and AAVE ETF. In exchange, it requests the DAO to commit to providing $25 million in stablecoins and 75,000 AAVE to cover operational expenses, as well as applying for five grants of $3 million each for the development and marketing of Aave App, Aave Pro, and Aave Card, along with $2.5 million for Aave Kit.Aave Labs stated that the v4 architecture will enable revenue models that were difficult to achieve in previous versions, planning to gradually adjust v3 parameters to guide migration 8-12 months after the v4 launch. The proposal also requests the DAO to coordinate with Labs on v4 development and to postpone the development of new features for v3.Marc Zeller, founder of the Aave Chan Initiative, expressed opposition to this. Zeller described it as a "disguised attempt at cashing out under the guise of goodwill," claiming that Labs is trying to use a radical proposal as leverage in negotiations, "attempting to impose outcomes regardless of the governance process." He estimates that Labs' actual funding request is around $50 million and questions its governance legitimacy.

The on-chain options market has seen a historic surge in trading volume over the past two weeks, recording $44 million in the first week of February and $28 million in the last week of January. Currently, over 80% of the trading volume is concentrated in the two major protocols, Ithaca and Derive, which processed $26 million and $11 million in transaction volume last week, respectively, while the third place, Overtime, only recorded $2 million.There is no consensus in the market regarding the reasons for the surge in trading volume. Possible factors include the annualized yield on USDT lending on Aave dropping to about 2%, reducing its attractiveness; and market expectations for the upcoming launch of the HIP-4 market on Hyperliquid. Notable DeFi trader Route 2 Fi recently posted on the X platform, stating that the 2% annualized yield on USDT on Aave has lost its appeal, sparking widespread discussion in the community and reflecting that some users are actively seeking alternative investment channels for higher returns.

According to monitoring by Lookonchain, Garrett Jin (@GarrettBullish) withdrew 77.48 million USDT from Binance and repaid his loan on Aave.

On-chain analyst Yu Jin monitored that Aave founder Stani.eth continued to sell 1,700 ETH (approximately $3.53 million) in the past 13 hours and purchased AAVE: by providing unilateral liquidity, he exchanged 1,700 ETH for 30,727 AAVE.In the last day, Stani.eth sold a total of 6,204 ETH (approximately $11.88 million).

According to statistics from Bubblemaps, Trend Research is currently selling Ethereum on a large scale to repay its leveraged position on AAVE. Data shows that the institution has transferred 332,000 ETH (approximately $700 million) to Binance in the past five days, and just in the last hour, it transferred ETH worth about $40 million.Trend Research currently holds approximately $100 million worth of ETH, accounting for 9% of the total supply of aWETH. Trend Research remains the second-largest holder of aWETH and continues to reduce its holdings. The institution, led by Jack Yi, became known in 2025 for establishing the largest leveraged long position in Ethereum through AAVE. As Ethereum prices fell in 2026, the institution began a "risk control adjustment," which involves transferring ETH to exchanges to repay debts. Analysts point out that as prices approach liquidation levels, Trend Research and other ETH whales may be forced to continue selling their positions.

Aave founder Stani posted on the X platform, stating that the Aave protocol and the entire DeFi ecosystem have experienced a remarkably resilient week. Over the past seven days, the protocol has liquidated collateral worth more than $450 million across multiple networks. For a lending protocol with a scale exceeding $50 billion, this accounts for about 0.9% of the total deposits at that time. Meanwhile, Aave continues to accumulate additional revenue.There may be bad debts during the lending process, and Aave has built-in mechanisms to handle such situations. Its resilience is attributed to a broad, autonomous liquidation network. Additionally, a new liquidation engine will be launched for Aave V4, bringing greater flexibility and performance to the protocol.Stani believes that DeFi wins through resilience, transparency, and superior cost structures, and these systems should be applied to all assets in both the crypto space and traditional finance.

Aave founder Stani posted on the X platform that the Aave protocol and the entire DeFi space have experienced a remarkably resilient week. Over the past seven days, the protocol has liquidated collateral worth more than $450 million across multiple networks. For a lending protocol with a scale exceeding $50 billion, this accounts for approximately 0.9% of the total deposits at that time.At the same time, Aave continues to accumulate additional revenue. Bad debts may occur during the lending process, and Aave has built-in mechanisms to handle such situations. Its resilience is attributed to a broad, autonomous liquidation network. Additionally, a new liquidation engine will be launched for Aave V4, bringing greater flexibility and performance to the protocol. Stani believes that DeFi wins through resilience, transparency, and superior cost structures, and these systems should be applied to all assets in both the crypto space and traditional finance.

According to on-chain analyst Yu Jin's monitoring, Ethereum founder Vitalik's plan to sell 16,384 ETH has currently sold 6,899.5 ETH (14.15 million), leaving 9,484.5 ETH for sale, with an average selling price of $2,052. The latest update shows that he has deposited all remaining ETH into the lending protocol Aave.Previously, it was reported that Vitalik planned to sell 16,384 ETH, and these funds are intended for a donation plan.

The Aave governance delegation platform Aave Chan Initiative (ACI) proposed a governance proposal on January 29, suggesting to pause deployments on the three Layer 2 networks of zkSync Era, Metis, and Soneium, citing that these networks contribute very little user activity, TVL, and revenue.ACI pointed out in the proposal, "Over time, it has become clear that only a small number of instances contribute very little user activity, TVL, and revenue, yet service providers and governance participants still need to invest a lot of effort." Currently, zkSync's TVL is approximately $26 million, Soneium around $17 million, and Metis about $9 million.According to DefiLlama data, Aave generated only $714 in revenue on zkSync over the past 30 days, $679 on Metis, and just $150 on Soneium. In contrast, during the same period, it generated over $7.7 million in revenue on the Ethereum mainnet and nearly $300,000 on Base.ACI also proposed that any future new chain deployments must guarantee Aave at least $2 million in annual revenue, arguing that protocol liquidity is often underestimated relative to upfront and ongoing costs. Snapshot voting was launched on the same day.

According to on-chain analyst Jiajuyin's monitoring, Aave founder Stani.eth sold 4,504 ETH on-chain in the past 4 hours for 8.36 million USDC. The selling price was $1,855.

According to on-chain analyst Ai Yi's monitoring, the whale 7 Siblings has accumulated 17,757.77 ETH at an average price of $1,964.55, worth $34.88 million.This whale has collateralized a total of 423,048.58 ETH through Aave and Maker to borrow $254 million in stablecoins.

According to Arkham data, at 23:43, 57.17 WBTC (worth approximately $3.8306 million) was transferred from Binance to an anonymous address (starting with 0x6Ae9...). Subsequently, at 23:47, that address transferred 57.17 WBTC to Aave.

According to research data from CryptoQuant, the lending demand in the crypto market saw a rebound in early 2026. The stablecoin lending activity on AAVE v3 slightly rebounded after hitting a low in December 2025, with the total lending volume increasing from the December low, indicating that market leverage demand is gradually recovering, although the recovery process is relatively mild, and the market is still in a cautious rebuilding phase.In addition, the credit activity of the CeFi lending platform Nexo also saw a recovery in early 2026, with credit withdrawals reaching $24 million in January, a month-on-month increase of 9%, but lending activity remains below mid-2025 levels. The lending demand for Ethereum significantly increased from September 2024 to January 2025. In January 2026, the total amount of ETH lent on AAVE v3 reached 1 million ETH, a month-on-month increase of 48%, which is 2.7 times the level in September 2024.The proportion of ETH in Nexo's collateral has risen from 9% in Q2 2024 to 12%, indicating that ETH holders are more inclined to obtain liquidity through lending rather than direct sales, while Bitcoin still accounts for 56% of the total collateral ratio.

According to on-chain analyst @ai_9684xtpa, a certain whale/institution sold 41,800 ETH to avoid liquidation. They sold a total of $94,140,000 worth of ETH through Hyperunit across 10 addresses in the past 8 hours, and subsequently deposited it into Aave to repay loans.Since the market drop on January 31, they have cumulatively sold 58,117 ETH (approximately $131 million) and currently still have 38,465.3 ETH staked on-chain and have borrowed 40.06 million USDC.

According to MLM monitoring, a certain entity is continuously selling a large amount of ETH on Hyperliquid through 11 wallets to repay its loan on Aave:In the past 5 hours, the entity has sold 31,700 ETH (approximately $80.8 million) on Hyperliquid; over the past 4 days, it has sold a total of 47,000 ETH (approximately $120 million). Currently, it is still depositing 49,600 ETH (approximately $112 million) into Aave as collateral while borrowing $86 million in USDC.As the price of ETH declines, this position is nearing the liquidation threshold, forcing the entity to continuously sell ETH to repay debts in order to avoid complete liquidation.

The founder of Aave, Stani.eth, announced the gradual shutdown of the Family iOS wallet, but it will continue to support the Aave App as infrastructure. Aave Labs will no longer use the Avara umbrella brand, which included the Family brand and the Lens brand, while Lens is now managed by Mask.Aave plans to concentrate resources on enhancing the Aave brand awareness to refocus on its DeFi business.