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What is expected in the development of AAVE?

Aave’s 2026 roadmap centers on expanding decentralized finance (DeFi) with three main projects:

  1. Aave V4 Public Testnet (Q1 2026) – Completing security checks and launching a system that connects liquidity across multiple blockchains.
  2. Aave App Full Launch (Early 2026) – A mobile-friendly app designed to make DeFi easy for everyday users.
  3. Horizon RWA Growth (2026) – Growing deposits to over $1 billion by partnering with traditional financial institutions.

Deep Dive

1. Aave V4 Public Testnet (Q1 2026)

Overview:
Aave V4 will introduce a new “Hub-and-Spoke” design that links liquidity from different blockchains into one unified system, replacing isolated pools. The code is currently being carefully reviewed and tested, with a public testnet expected in early 2026. Features include adjustable risk settings, automatic management of user positions, and more efficient transactions that save on fees.

What this means:
This is a positive development for AAVE because shared liquidity can make markets deeper, reduce price changes during trades, and attract larger institutional users. However, delays in security checks or slow adoption could impact progress.

2. Aave App Full Launch (Early 2026)

Overview:
The Aave App, which started beta testing on iOS in November 2025, aims to simplify DeFi by offering a user experience similar to traditional banking. It includes no-fee options to convert regular money (fiat) and offers up to 9% annual interest on stablecoins. The full launch plans to reach 1 million users in early 2026 (CoinMarketCap).

What this means:
This is cautiously optimistic; success depends on keeping users engaged in a competitive financial app market. If it succeeds, it could increase total value locked (TVL) in Aave and help stabilize the GHO stablecoin.

3. Horizon RWA Growth (2026)

Overview:
Horizon is Aave’s platform for tokenizing real-world assets (RWAs) like U.S. government bonds and corporate debt, currently holding $550 million in assets. Partnerships with companies like Circle, Franklin Templeton, and VanEck aim to grow deposits beyond $1 billion in 2026, tapping into a traditional asset market worth over $500 trillion.

What this means:
This is promising for long-term growth, as RWAs bring new revenue streams beyond crypto markets. However, regulatory challenges and risks of asset defaults remain concerns.

Conclusion

Aave’s 2026 plan combines technical upgrades (V4), broader user adoption (Aave App), and institutional partnerships (Horizon). While there are risks in execution, the protocol is well-positioned to grow in both decentralized and traditional finance. Could unified liquidity and real-world assets make AAVE a key player in on-chain finance?


What updates are there in the AAVE code base?

Aave’s technology is making big strides with major upgrades and new tools designed for developers.

  1. V4 Protocol Launch (Q4 2025) – A new modular system that connects different markets for better cross-chain liquidity.
  2. Dynamic Risk & Safety Upgrades (December 2025) – Smarter ways to manage risks and improve security.
  3. SDK/API Integration (August 2025) – Easier tools for developers to build on Aave’s platform.

Deep Dive

1. V4 Protocol Launch (Q4 2025)

Overview: Aave V4 introduces a modular setup where a central liquidity “hub” links to customizable markets called “spokes.” This allows each market to set its own borrowing and lending rates and manage risk in a way that fits its users.

This replaces Aave’s old all-in-one system. Now, spokes can pull liquidity from the hub and add their own risk premiums on top of a base rate. This design supports operations across different blockchains and can handle large amounts of money, making it attractive to big institutions.

What this means: This is a positive development for AAVE because it prepares the platform to manage trillions in assets, drawing in institutional investors and making better use of capital. (Source)

2. Dynamic Risk & Safety Upgrades (December 2025)

Overview: The new liquidation system in V4 only closes enough positions to keep collateral healthy, which helps avoid big market swings. The code will also undergo formal checks and audits by security firms like ChainSecurity to catch and fix vulnerabilities.

What this means: This is neutral for AAVE — better security lowers risks for everyone, but the complexity of these upgrades might slow down adoption if any bugs appear.

3. SDK/API Integration (August 2025)

Overview: Aave has released developer-friendly tools like React and TypeScript SDKs and a GraphQL API. These make it easier for developers to connect with Aave markets and build new applications with less coding effort.

What this means: This is good news for AAVE because simpler integration can speed up growth and bring more users into the ecosystem.

Conclusion

Aave is evolving to support large-scale institutional use (with V4), improve security, and make it easier for developers to build on its platform. While debates over front-end fees continue, the technical progress is strong. It will be interesting to see how cross-chain liquidity and real-world asset (RWA) integrations influence AAVE’s position in 2026.


Which fund leveraged AAVE for ETH?

Trend Research is an investment fund that used Aave to grow its Ethereum (ETH) holdings.

  1. It borrowed about $958 million in USDT stablecoins on Aave to buy more ETH, creating a cycle of borrowing and buying that increased its exposure reported by CoinGape.
  2. This strategy helped the fund accumulate roughly 601,000 ETH, worth around $1.8 billion, spread across several wallets covered by CryptoNews.
  3. Blockchain analysts and Arkham linked this large borrowing activity on Aave to Trend Research as noted on X.

Deep Dive

1. Who and What

Trend Research is a Hong Kong-based investment firm that used Aave (AAVE), a decentralized lending platform, to borrow stablecoins (USDT) and increase its Ethereum holdings. The fund borrowed nearly $958 million in USDT, buying ETH at an average price of about $3,265 per coin. For more details, see the articles linked above and a market summary confirming the borrowing loop and scale here.

2. How the Aave Loop Worked

The process involved depositing ETH as collateral on Aave, borrowing USDT against it, then using that USDT to buy more ETH on exchanges like Binance. The newly bought ETH was then redeposited on Aave to borrow more USDT, repeating the cycle. Reports show steps such as withdrawing and redepositing 11,520 ETH and borrowing additional millions in USDT to fund more ETH purchases, reinforcing this loop explained in the TradingView repost and summarized by CoinGape here.
What this means: This borrowing-and-buying loop lets the fund increase its ETH exposure without adding new cash, but it also increases risk because the value of the ETH collateral and borrowing costs become more important.

3. Scale and Risks

The fund’s holdings reached about 601,000 ETH, worth roughly $1.8 billion, according to blockchain data and news reports here. Analysts identified the large borrower of 66,000 ETH on Aave as Trend Research, based on Arkham’s data and the pattern of borrowing and exchanging on X. Community researchers also warned that if ETH’s price drops into the low $2,000 range, Aave’s automatic liquidation system could trigger forced sales, increasing losses during sharp market downturns example thread.
What this means: If ETH’s price falls while borrowing costs remain high, the fund’s collateral could quickly lose value, forcing it to sell assets to repay loans.

Conclusion

Trend Research used Aave to borrow USDT and repeatedly buy ETH, significantly increasing its exposure to Ethereum. While this strategy can boost returns if ETH’s price rises, it also ties the fund’s performance closely to ETH’s market value and borrowing conditions on Aave. Monitoring on-chain debt levels and liquidation points can provide early warnings of potential financial stress for the fund.


What are people saying about AAVE?

The Aave (AAVE) community is divided between hopeful technical traders and concerns over governance issues. Here’s what’s happening right now:

  1. Positive Technical Signs: Analysts expect AAVE to reach $180–$200 if key support levels hold steady.
  2. Governance Dispute: A disagreement over revenue control has caused an 18% drop in price over the past week.
  3. Large Sell-Offs: A $38 million sale by big holders triggered a quick 10% price crash.
  4. Future Plans: Upcoming updates like Chainlink integration and token buybacks are encouraging long-term confidence.

In-Depth Look

1. Bullish Setup Around $153.40–153.48

@FinoraAI_DE points out a buying opportunity near $153.40–153.48, with a target price of $155.93 if momentum continues.
See original post
What this means: Short-term traders see this as a good chance to buy the dip, especially since AAVE recently rallied 7.64% in 24 hours to $161.73.

2. Governance Conflict Over $10 Million Revenue

@DeFi_Scope reports that 230,000 AAVE tokens were sold amid a dispute between the decentralized autonomous organization (DAO) and Aave Labs about redirecting swap fees.
See original post
What this means: This disagreement is causing uncertainty and could weaken trust in AAVE’s decentralized governance. However, the project’s founder, Kulechov, bought $12.6 million worth of AAVE during the price dip, signaling confidence.

3. Large Holder Sell-Off Causes Price Drop

@aegixe_team notes that a sale of 230,350 AAVE tokens for stETH/WBTC triggered a 10% intraday price drop.
See original post
What this means: This shows that large holders (“whales”) still have significant influence on AAVE’s price, despite the project’s $2.47 billion market cap.

4. Buyback Program Supports Price

@AxieAur shares that the Aave DAO is buying back $140,000 worth of AAVE daily using fees collected by the protocol.
See original post
What this means: This buyback program could reduce the total supply by about 2% per year, helping support the price. This aligns with AAVE’s 3.24% weekly gain, even as overall market fear remains moderate (CoinMarketCap Fear Index: 38/100).

Conclusion

Overall, opinions on AAVE are mixed. Technical traders see potential for a rebound between $150 and $160, but ongoing governance disputes and the influence of large holders create uncertainty. A key event to watch is the January 2026 DAO vote on revenue sharing (source: TokenPost). If approved, it could renew institutional interest in AAVE’s $35 billion total value locked (TVL) ecosystem. If rejected, the recent 45% decline over 90 days may continue. Keep an eye on the $173–$178 price range for signs of a trend change.

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What is the latest news about AAVE?

Aave is navigating important changes in its governance and showing signs of growth, with its price rising 7.6%. Here’s what’s happening:

  1. Revenue Sharing Proposal (January 3, 2026) – AAVE’s price jumped 10% after the founder promised to share app fees with token holders.
  2. Brand Control Vote Fails (December 26, 2025) – The community voted against handing over Aave’s brand assets to the decentralized organization, sparking debates about centralization.
  3. SEC Ends Investigation (December 16, 2025) – After a 4-year review, the SEC closed its probe without taking action, lowering regulatory concerns.

Deep Dive

1. Revenue Sharing Proposal (January 3, 2026)

What happened: Stani Kulechov, founder of Aave Labs, announced a plan to share revenue from parts of the platform outside the core lending service—like fees from the front-end swap interface and future products—with AAVE token holders. This came after some criticism that Aave Labs was keeping these revenues for itself.

Why it matters: This is good news for AAVE holders because it links the token’s value to the platform’s overall growth, not just lending. However, details like how much revenue will be shared and protections for holders are still unclear. The market responded quickly, pushing AAVE’s price up 10% right after the announcement (TokenPost).

2. Brand Control Vote Fails (December 26, 2025)

What happened: A proposal to transfer control of Aave’s brand assets—such as website domains and social media accounts—to the decentralized autonomous organization (DAO) was rejected by 64% of voters. Some argued that giving the community control could slow down decision-making, while others wanted more transparency over how Aave Labs handles revenue.

Why it matters: This result is somewhat negative in the short term. Keeping brand control with Aave Labs allows faster decisions but raises concerns about centralization. The vote also coincided with a large sale of 230,000 AAVE tokens (about $37 million), which contributed to a 10% price drop (Cointelegraph).

3. SEC Ends Investigation (December 16, 2025)

What happened: The U.S. Securities and Exchange Commission (SEC) closed its four-year investigation into Aave without filing any charges. This reflects a more favorable regulatory environment for decentralized finance (DeFi) projects, partly influenced by the current administration’s crypto-friendly stance.

Why it matters: This is a positive development because it removes a major source of uncertainty for Aave and similar projects. However, the price only rose modestly by 2.3%, likely due to overall market fluctuations at the time (CoinMarketCap).

Conclusion

Aave is balancing new ideas like revenue sharing with challenges in governance, while regulatory pressures are easing. The big question now is whether the details of the revenue sharing plan will satisfy token holders or if Aave Labs’ continued control will slow down decentralization efforts. Keep an eye on upcoming DAO votes and the planned V4 protocol upgrades expected in the first quarter of 2026.


What could affect the price of AAVE?

Aave is at a critical crossroads, balancing new governance ideas with market challenges.

  1. Revenue Sharing Vote – A key upcoming decision by the community on sharing profits earned outside the main protocol (Positive for growth)
  2. V4 Upgrade – A new liquidity system designed to attract big investors, but with mixed results expected
  3. Regulatory Environment – The SEC investigation has ended, but new U.S. crypto laws are still pending (Neutral to positive)

In-Depth Look

1. Governance & Revenue Sharing (Positive Outlook)

What’s happening:
On January 2, 2026, Aave’s community will vote on a proposal to share fees from the app, swaps, and real-world asset (RWA) income with AAVE token holders. This news already pushed AAVE’s price up by 10%. The vote aims to settle ongoing debates about how value is shared between the community and the core developers.

Why it matters:
If approved, AAVE’s value would be more closely tied to growth beyond traditional lending, including new products for institutions and everyday users. Other decentralized finance (DeFi) projects like Curve and Uniswap have seen increased demand after introducing similar fee-sharing models. However, Aave’s plan is unique because it combines on-protocol and off-chain revenues, which hasn’t been tested before.

2. Aave V4 & Market Competition (Mixed Outlook)

What’s happening:
The V4 upgrade, launched in late 2025, introduces a “hub-and-spoke” liquidity model that supports multiple blockchains and custom risk markets. Meanwhile, competitors like Folks Finance offer seamless cross-chain borrowing without needing to bridge assets.

Why it matters:
V4’s success depends on growing real-world asset collateral to over $1 billion through its Horizon platform (currently at $550 million) and making the user experience easier with the new Aave App. If it falls short, Aave risks losing market share to more streamlined competitors. Currently, Aave holds 59% of the DeFi lending market (DeFiLlama), but this lead is under pressure for the first time since 2023.

3. Regulatory Landscape (Neutral to Positive)

What’s happening:
The SEC ended its four-year investigation into Aave in December 2025. However, the U.S. government’s Clarity Act, which aims to regulate crypto, is expected by January 2026. Meanwhile, Europe’s MiCA regulations already allow Aave to offer stablecoin services there.

Why it matters:
The SEC’s closure removes a significant regulatory risk that had been weighing on AAVE’s price since 2022. However, delays in U.S. crypto legislation contributed to nearly $1 billion in crypto outflows in late 2025 (CoinShares), showing how government policies can heavily influence major DeFi projects.

Conclusion

AAVE’s performance in 2026 will depend on successfully rolling out its ambitious “trillion-dollar liquidity” vision through the V4 upgrade while managing governance challenges. The January 10 revenue sharing vote and the first quarter launch of V4’s mainnet are critical moments to watch.

Will Aave use its early lead in real-world assets to counter slowing growth in DeFi? Keep an eye on the 30-day average daily active users (currently 4,120) for signs of momentum.


Why did the price of AAVE go up?

Aave (AAVE) increased by 5.31% in the last 24 hours, outperforming the overall crypto market (+0.99%) and other altcoins like XRP and ADA, which rose between 8-11%. Here are the main reasons behind this move:

  1. Revenue Sharing Proposal (Positive)
    Aave’s founder, Stani Kulechov, promised to share revenue earned outside the main protocol with AAVE token holders. This came after a heated vote in the community and helped boost investor confidence.

  2. $400 Million Whale Deposit (Positive)
    A large transfer of 400 million USDT (a stablecoin) into Aave increased its Total Value Locked (TVL) by 2.5%, showing strong interest from big investors.

  3. Altcoin Market Rally (Mixed)
    Bitcoin’s rise above $90,000 encouraged risk-taking, lifting AAVE along with other altcoins like PEPE (+25%) and DOGE (+13%).

In-Depth Analysis

1. Governance Changes Favoring Tokenholders (Positive Impact)

Summary:
Stani Kulechov announced plans to share revenue from Aave’s app, swap features, and future products with AAVE holders. This came after a rejected proposal that would have handed over control of Aave’s brand and intellectual property, which had caused concern about conflicting interests.

Why it matters:

What to watch:

2. $400 Million USDT Deposit Boosts TVL (Positive Impact)

Summary:
On March 15, 2025, a large investor moved 400 million USDT from the HTX exchange to Aave, marking one of the biggest stablecoin transfers this year. This increased Aave’s TVL by 2.5%.

Why it matters:

Key figure: Aave’s TVL now stands at $56 billion, maintaining its position as the leader in decentralized finance (DeFi) lending with a 59% market share.

3. Technical Price Movement Reflects Market Mood (Mixed Impact)

Summary:
AAVE’s price recently moved above its 7-day simple moving average ($152.68) and 30-day exponential moving average ($167.8). The Relative Strength Index (RSI) is at 49.25, indicating a neutral but improving momentum.

Why it matters:

Key level to watch: If AAVE closes above $175.2, it could aim for $200. If it fails, the price might test support at $143.67.

Conclusion

Aave’s recent price increase shows renewed confidence in its governance, strong liquidity from large investors, and positive momentum in the altcoin market. However, the 30-day price is still down 18%, reflecting ongoing risks from internal community disagreements and regulatory uncertainties in DeFi.

What to watch: Will the revenue-sharing proposal pass with clear, enforceable terms? And can Aave’s TVL stay above $60 billion after the recent deposit? Answers to these questions will likely determine if this rally continues or fades.