Whalesbook
Revenue Streams Now Flow to Aave DAO
The "Aave Will Win" proposal marks a major shift for Aave, moving toward a model where all economic value accrues to the AAVE token. This key decision resolves a governance dispute that began in December 2025, when Aave Labs initially diverted swap fees away from the DAO treasury. Under the new framework, 100% of revenue from Aave-branded products will now go directly to the Aave DAO. To support ongoing development, Aave Labs will receive a $25 million stablecoin grant and 5,000 AAVE tokens, worth about $6.8 million, from the DAO treasury. This centralization of economic rights and funding aims to align token holders with the protocol's builders and growth plans. Founder Stani Kulechov called the proposal "the most important proposal in Aave's history," seeing it as vital for positioning Aave as a comprehensive financial network beyond just a lending protocol.
New Products and Aave V4 Boost Revenue
The "Aave Will Win" framework diversifies and centralizes revenue. In addition to existing protocol fees, revenue from application-layer products like Aave Pro, Aave App, Horizon, and Aave Kit will now add to the DAO treasury. Swaps on Aave.com and Aave Pro alone are estimated to generate $10 million to $20 million annually. Aave App is designed for mainstream users, offering a "fintech-like experience" with account protection and a planned card product to generate fees for the treasury. The upcoming Aave V4 will also feature a reinvestment function for idle capital in lending pools, turning unused liquidity into yield-generating assets. This module is expected to deploy around $6 billion in idle stablecoin deposits into low-risk strategies, potentially increasing average stablecoin deposit APY by an estimated 25%, from about 4% to 4.93%. These higher yields also create a new revenue stream for the DAO. Aave's revenue in 2025 was $140 million, and it is on track to match that in 2026, ranking it among DeFi's leading earners.
Aave's Position in DeFi Lending
Aave holds approximately $25 billion in Total Value Locked (TVL) across various blockchains, making it the leading lending protocol in decentralized finance with an estimated 60% market share. For comparison, Uniswap has a market capitalization of about $1.94 billion, with its UNI token trading near $3.04. Lido DAO, a key player in liquid staking, has a market cap around $266 million, with LDO trading near $0.31. Aave's market capitalization is between $1.3 billion and $1.5 billion, with its AAVE token trading between $90 and $97. While price-to-earnings ratios aren't standard for cryptocurrencies, Aave's large TVL and strong revenue generation place it among top DeFi protocols. The overall DeFi lending market has grown significantly, with DeFi lending applications accounting for roughly 62.71% of the $73.59 billion crypto-collateralized lending market in Q3 2025.
Community Concerns and Potential Risks
Despite the decisive vote, some internal dissent within the Aave community points to potential risks. Marc Zeller, founder of the Aave Chan Initiative, noted that excluding votes from Aave Labs-affiliated addresses showed community sentiment leaning against the "Aave Will Win" proposal during its Temp Check phase. Concerns remain about fiscal controls, the precise stages of capital deployment, and maintaining Aave Labs' independence. The DAO now has the considerable task of funding Aave Labs' operations, creating a situation where revenue shortfalls could strain DAO resources. Successfully delivering the ambitious "fintech-like experience" and AI integration involves significant operational hurdles. Additionally, the crypto market is prone to high volatility, regulatory changes, and macroeconomic pressures that could affect Aave's revenue and TVL. The close margin of the Temp Check vote (52.58% in favor) suggests a divided community and potential future governance challenges.
Ambitious Growth to $1 Trillion
Founder Stani Kulechov has outlined a vision to scale Aave's TVL from its current $40 billion to $1 trillion, aiming to establish it as a global "financial network." The protocol's strategy includes integrating more real-world assets (RWAs) and expanding across multiple chains. This builds on architectural changes in Aave V4, designed to balance capital efficiency and risk separation. While brokerage sentiment isn't formally tracked for crypto, it often aligns with governance successes and technological progress. The approval of the "Aave Will Win" proposal, along with Aave V4's potential features, suggests a positive outlook for Aave's ongoing growth and market leadership. Success will depend on effective execution of its ambitious roadmap and managing internal governance divisions.