Aave Founder Rejects Kraken Stake Sale Rumors, Signals Future Token Buyback Plans

Aave founder Stani Kulechov has pushed back against reports suggesting that Kraken’s parent company Payward is negotiating to acquire a 15% stake in the decentralized lending protocol at a $385 million valuation, arguing that the deal would undervalue the AAVE ecosystem.

Responding to the speculation on X, Kulechov said there was “no way” Aave would sell AAVE tokens at what he described as a 70% discount compared with the token’s fully diluted valuation.

A valuation of $385 million would reportedly represent only a fraction of AAVE’s fully diluted market value, raising questions about whether such a transaction would accurately reflect the protocol’s growth and revenue potential.

Kulechov highlighted Aave’s financial performance, noting that the protocol generates roughly $134 million in annualized revenue, with those earnings currently flowing toward the Aave DAO.

However, while denying the framing of the reported deal, Kulechov stopped short of ruling out discussions involving Aave Labs, the development company behind the protocol. He explained that Aave Labs holds an allocation of AAVE tokens and that several market participants have explored potential purchases connected to long-term partnerships.

The speculation comes after a history of collaboration between Aave and Kraken. Kraken’s Layer 2 blockchain, Ink, previously integrated a customized version of Aave’s lending technology called Tydro, using it as a core lending component for the network.

Aave has faced several challenges in recent months, including a decline in total value locked following the Kelp DAO exploit. Although Aave was not directly targeted, attackers used the incident to move stolen assets through the protocol, prompting the team to introduce a revised risk management framework.

The protocol also experienced governance tensions after Aave Labs redirected interface swap fees toward itself rather than the DAO, sparking criticism from parts of the community. Several core contributors departed, while some governance proposals called for Aave DAO to take greater control over Aave Labs’ intellectual property.

Kulechov later introduced the “Aave Will Win” proposal, which received strong community approval and shifted protocol and product revenue back toward the DAO and AAVE token holders. In return, Aave Labs received multi-year funding to continue development.

Kulechov emphasized that Aave Labs operates as a service provider for the DAO and does not receive protocol revenue. He also revealed that the team is working on “Aavenomics 3.0,” which is expected to include a new automated and non-discretionary AAVE buyback mechanism.

The upcoming changes could mark another major step in Aave’s effort to align protocol growth, revenue distribution, and token-holder value.