πŸ₯› Why Aave isn’t a buy (yet) πŸ‘€

Milk RoadΒ·Β·14 min read
Crypto/Web3DeFiFinance
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AI Summary

Milk Road PRO analyzes Aave's troubling six-week period marked by key contributor exits, governance tensions, and a major exploit, arguing the DeFi protocol faces bearish conditions despite its V4 upgrade launch. The analysis reveals power consolidating from the DAO toward Aave Labs company, with three major teams (BGD Labs, Aave Chan Initiative, Chaos Labs) departing amid revenue disputes and architectural changes.

Key Facts

βœ“Aave faces major governance crisis with three key contributors (BGD Labs, Aave Chan Initiative, Chaos Labs) exiting over six weeks amid power shift toward Aave Labs company.
βœ“AAVE token down 75% from 2025 high despite V4 upgrade launching with improved hub-and-spoke architecture that separates liquidity from lending rules.
βœ“Milk Road PRO maintains bearish stance on AAVE citing 25x revenue multiple, 70% revenue decline, and contributor exodus coinciding with $200M Kelp hack.

Author Takes

BearishMilk Road

Aave governance

Power inside Aave is quietly moving from the DAO and its independent contributors to Aave Labs, the company

BearishMilk Road

AAVE token valuation

A 25x revenue multiple is hard to justify when revenues are down 70%, buyback ammunition is nearly spent, and the people who built the protocol's credibility walked out

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