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A revenue-sharing dispute has broken out between Aave, the independent financial lender, and its lead developer, Aave Labs.
The conflict centers on Aave Labs’ recent decision to integrate CoW Swap as the core trading infrastructure on the protocol’s main site. This change replaces ParaSwap, a previous integration that generated referral fees for the Aave DAO treasury.
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DAO members question the economic ramifications of the UI upgrade
Government representatives say the change has cut off a revenue stream of about $200,000 a week. On an annual basis, they estimate the impact to be around $10 million, taking value away from token holders.
to criticize Mark Zeller, founder of the Avi Chan Initiative, The move is described as a “subtle privatization” of the brand’s assets.
Zeller argued that Aave Labs unilaterally changed the economic agreement without seeking approval from the DAO that governs the underlying smart contracts.
“Aave Labs, in its pursuit of private profit, has redirected the volume of Aave users towards the competition. This is unacceptable. With this integration, the Aave protocol has lost two inputs that cannot be easily replaced.”
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Zeller warned that the lack of communication raises concerns about how future promotions will be handled.
He specifically referred to promotion Coming to the V4 engine He wondered if he could even be limited “Accessory Functions” Elsewhere DAO.
“It’s important to look at the big picture to determine whether Aave Labs has breached its expected fiduciary duty to Aave and AAVE DAO token holders, and what we should expect from V4 in general,” Zeller concluded.
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Aife Labs moving samples
in rejected Articulated, repellent Stani Kulichov, Founder and CEO of Aave Labs, Regarding this merger, refusing to qualify the lost money as stolen revenue.
Kulichov argued that ParaSwap’s previous fees were a “discretionary surplus” and not a mandatory fee under the protocol.
“It was never a fee change, it was a surplus that we donated to the IDA,” he said.
He also drew a clear line between Aave Protocol, decentralized smart contracts governed by a DAOand the front-end interface. The interface is described as a proprietary product funded and maintained by Aave Labs.
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Kulichov said Aife Laboratories You bear the engineering and security costs of the site. He added that the DAO does not support ongoing product development expenses.
Thus, the company asserts its right to generate income from the interface to ensure its sustainability.
“It’s also perfectly acceptable for Aave Labs to monetize its products, especially since it doesn’t touch the protocol itself,” he said.
as well as She repeated The development company affirmed the position of Kulichov, recognizing his failure to effectively communicate the change.
The company said it turned to CoW Swap to offer better execution prices and stronger protection against MEV (maximum extractable value), rather than to generate additional revenue.
