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Aave Governance Rift Deepens Over Front-End Switch and DAO Revenue Loss

The clash centers on front-end monetization rights, setting expectations for the coming V4 upgrade.

Overview

  • Aave Labs replaced ParaSwap with CoW Swap on Aave’s primary website, ending referral fees that governance delegates estimate at roughly $200,000 per week for the DAO treasury.
  • Delegates, led publicly by Marc Zeller, denounced the move as a unilateral “stealth privatization” and raised questions about expected fiduciary duties to token holders.
  • Founder Stani Kulechov argued the prior ParaSwap fees were a discretionary surplus rather than protocol-mandated revenue.
  • Aave Labs says the integration prioritizes better execution and MEV protection and characterizes the front-end as a privately funded product the company may manage and monetize.
  • The dispute remains unresolved and has broadened into concerns about unilateral decision-making and transparency ahead of the planned V4 upgrade.