dao

Stani Kulechov, founder of Aave, has unveiled an ambitious long-term roadmap outlining how the largest DeFi lending protocol aims to evolve into the foundational credit layer of the onchain economy. The announcement comes at a sensitive moment, as governance tensions within the Aave DAO continue to intensify.
Kulechov, who also serves as CEO of Avara, the parent company of Aave Labs and the protocol’s primary development contributor, shared the roadmap on X earlier this week. The strategy centers around three core pillars: Aave V4, Horizon, and the Aave App.
According to Kulechov, Aave is entering a phase capable of onboarding the “next trillions of dollars in assets” and millions of new users to blockchain-based finance. “Aave will win,” he stated, emphasizing that the protocol is “still at day zero compared to what lies ahead.”
Aave’s Market Dominance and Financial Scale
Aave currently stands as the undisputed leader in DeFi lending, and one of the most profitable onchain protocols overall. Data shows that Aave has:
Processed $3.33 trillion in deposits
Issued nearly $1 trillion in loans
Generated $885 million in fees this year
Captured approximately 59% of the DeFi lending market
This scale underpins Kulechov’s confidence that Aave can serve as the default credit infrastructure for global onchain finance.
Aave V4: Liquidity Unification and Institutional Scale
At the center of the roadmap lies Aave V4, a comprehensive architectural redesign built around a hub-and-spoke liquidity model.
Instead of fragmented liquidity pools spread across multiple chains, Aave V4 will consolidate capital into central liquidity hubs, while enabling specialized “spoke” markets tailored to specific asset classes. This structure is designed to dramatically improve capital efficiency, risk management, and scalability.
Kulechov argues that this design will allow Aave to support trillions of dollars in assets, positioning the protocol as the default liquidity and credit venue for institutions, fintech firms, and global credit markets. Aave V4 will also introduce a robust developer toolkit to accelerate integrations and product deployment across the ecosystem.
Horizon: Bridging Real-World Assets to DeFi Credit
The second pillar, Horizon, serves as Aave’s institutional compliance gateway. Launched earlier this year, Horizon enables institutions to use tokenized U.S. Treasuries and other real-world assets (RWA) as collateral in DeFi lending.
In his December 16 post, Kulechov described Horizon as the bridge for the “next trillion dollars” of capital. Aave is targeting $1 billion in deposits by 2026, supported by partnerships with Circle, Ripple, Franklin Templeton, VanEck, and other major financial players.
Horizon has already reached $550 million in net deposits, and Kulechov described it as the fastest-growing RWA-based lending platform in DeFi, reinforcing Aave’s push toward institutional adoption.
Aave App: Consumer Gateway to DeFi
The third pillar, the Aave App, is designed as a consumer-facing gateway to decentralized finance. The app integrates Push, a zero-fee fiat on/off-ramp for stablecoins that covers over 70% of global capital markets.
Kulechov positions the Aave App as a direct competitor to traditional fintech products, arguing that DeFi can offer superior savings, lending, and money management solutions. The full release is planned for early 2026, with an ambitious goal of onboarding Aave’s first one million mainstream users.
Governance Conflict Intensifies Inside Aave DAO
The roadmap was revealed amid escalating governance disputes between Aave Labs and segments of the Aave DAO, centered on long-term strategic control and protocol revenue allocation.
The conflict originated when a DAO delegate raised concerns over Aave Labs integrating CoW Swap into the Aave interface to replace Paraswap, redirecting swap fees away from the DAO treasury. This sparked broader debate over potential “implicit privatization” of DAO value and the blurred boundaries between Aave Labs’ products and DAO-owned assets.
Most recently, an AAVE token holder proposed a controversial “poison pill” mechanism, granting the DAO the right to absorb Aave Labs if conflicts of interest escalate. The proposal aims to strengthen DAO leverage in future disputes involving protocol revenue, branding rights, and core development responsibilities.
Kulechov Responds and SEC Investigation Concludes
Addressing concerns about alignment, Kulechov emphasized that he and his team are among the largest AAVE holders, and have contributed more upgrades and products to the protocol than any other party.
“I’ve read many DAO forum discussions. I want to be clear: no one cares more about Aave than I do,” he wrote. “Open debate is a feature of DeFi governance, not a sign of misalignment.”
The roadmap announcement also follows a major regulatory milestone. Kulechov revealed that the U.S. Securities and Exchange Commission (SEC) has officially closed its multi-year investigation into Aave without enforcement action. He framed this outcome as a validation of DeFi’s resilience, reaffirming his belief that “DeFi will win.”
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#AAVE #DEFİ #DAO

Governance under fire. ConstitutionDAO faces headwinds as KuCoin removes margin support and regulators eye DAOs, pressuring the token.
What's Happening:
KuCoin delists PEOPLE from margin trading servicesRegulatory bodies increasing scrutiny on DAO structuresRedeemability for ETH remains the core value floorPrice drops 6.5% to $0.0084
Why It Matters: PEOPLE is unique because it's backed by a redemption capability (ETH). However, exchange delistings reduce liquidity and leverage, which hurts speculative demand. It's a battle between book value and speculative premium.
Technical View: $PEOPLE is trading near its redemption value floor. Upside is capped by regulation, downside is buffered by ETH reserves. It's a low-volatility bleed until a new narrative emerges.
🎯 Key Levels:
Support: $0.0080 | Resistance: $0.0090 24h Range: $0.0082 - $0.0086
💡 A DAO without a mission is just a treasury
What's your take? Drop a 🔥 for bullish, ❄️ for bearish 👇
#ConstitutionDAO #PEOPLE #DAO #CryptoRegulation #Web3
Disclaimer: This content is for educational purposes only and should not be considered financial advice. Always do your own research (DYOR) before making any investment decisions.

The U.S. Securities and Exchange Commission (SEC) has officially closed its long-running investigation into the Aave Protocol without recommending any enforcement action, according to a notice dated December 16. The decision marks the end of a multi-year regulatory probe into one of the largest decentralized finance (DeFi) lending platforms in the world and removes a significant regulatory cloud that has hovered over both Aave and the broader DeFi sector.
Investigation Closed Without Enforcement Action
In its formal notice, the SEC confirmed that it has concluded its investigation into the Aave Protocol and, at this time, does not intend to pursue enforcement proceedings. However, the agency made it clear that the closure should not be interpreted as a full exoneration. As is standard practice under Securities Act Release No. 5310, the SEC noted that it retains the right to reopen the matter or take future action if new information or changing circumstances warrant further scrutiny.
The investigation reportedly began around 2021–2022, during a period when the SEC significantly intensified its oversight of the cryptocurrency industry. At the time, regulators were targeting crypto lending platforms, staking services, governance tokens, and DeFi protocols, arguing that some of these activities could fall under U.S. securities laws.
Aave’s Role in the DeFi Ecosystem
Aave is a non-custodial, decentralized lending and borrowing protocol that allows users to supply digital assets to earn yield or borrow against collateral through automated smart contracts. The protocol operates without centralized intermediaries and is governed by a decentralized autonomous organization (DAO), where holders of the AAVE governance token vote on proposals related to upgrades, risk parameters, and treasury management.
With billions of dollars in total value locked (TVL) at its peak, Aave has long been viewed as a cornerstone of the DeFi ecosystem. As such, the SEC’s investigation into the protocol was closely watched by market participants, developers, and policymakers, who saw it as a potential test case for how U.S. regulators might approach decentralized financial infrastructure.
Regulatory Pressure Eases, But Questions Remain
The SEC’s decision to close the case without penalties aligns with a broader trend of regulatory pullbacks and reassessments under the leadership of SEC Chair Paul Atkins. In recent months, the agency has softened its aggressive enforcement posture toward crypto, especially in cases where proving jurisdiction or responsibility within decentralized systems has proven challenging.
Despite this regulatory relief, Aave is not without internal and governance-related challenges. Separately from the SEC investigation, the protocol has faced renewed scrutiny from its own DAO community over revenue flows and value capture.
DAO Revenue and Governance Concerns
Earlier this week, members of the Aave DAO raised concerns regarding a change in the protocol’s front-end infrastructure. Specifically, the official Aave interface transitioned its swap functionality from ParaSwap to CoW Swap. Some governance delegates argued that this change may have redirected swap fee revenue away from the Aave DAO treasury, potentially reducing annual revenue by as much as $10 million, depending on user activity and trading volumes.
Aave Labs responded by clarifying that the front-end interface is a separate product from the core protocol and that any previous revenue-sharing arrangements were voluntary rather than guaranteed. While this explanation addressed some concerns, the debate has reignited broader questions about decentralization, transparency, and how value is captured and distributed within DeFi protocols as they scale.
What This Means for Aave and DeFi
For now, Aave emerges from one of the most significant regulatory investigations in DeFi history without fines, settlements, or operational restrictions. This outcome may boost confidence across the DeFi sector, particularly among protocols that rely on governance tokens and non-custodial designs.
However, as DeFi continues to mature, Aave and similar platforms will likely face increasing pressure to balance decentralization with sustainable governance, clear revenue models, and regulatory resilience. The SEC may be stepping back for now, but the long-term evolution of DeFi will depend on how well these protocols address both external regulation and internal accountability.
👉 Follow for more in-depth crypto and DeFi updates, regulatory insights, and market analysis.
#DAO #SEC

One of the most misunderstood debates inside @Yield Guild Games and honestly across most #DAO ecosystems is the tension between subDAO tokens and the mother token. I have seen this framed as dilution, competition, or even fragmentation. But after watching how YGG actually operates, I think that framing misses the point entirely.

This debate isn’t about which token is better. It’s about what kind of alignment you want to create. In the early days, YGG had a single token representing the whole ecosystem. That made sense. There was one treasury, one strategy, and one shared direction. But as the guild expanded across regions, games, and communities, cracks began to show. A single token couldn’t accurately represent the value created at every local level. That’s when subDAOs entered the picture.

SubDAO tokens weren’t introduced to replace the YGG token. They were introduced to express local contribution. And that distinction matters more than people realize. Think about it from the ground up. A regional subDAO like YGG SEA operates in a completely different environment than another region. Different games perform better. Different communities engage differently. Different operational risks exist. Expecting one global token to perfectly price all of that activity is unrealistic.

SubDAO tokens allow value to be recognized where it’s created. On-chain, this separation creates clarity. Local contributors are incentivized by local outcomes. Performance is visible. Accountability is tighter. When a subDAO performs well, its token reflects that effort more directly than a global token ever could. But here’s the key part this only works if the relationship between tokens is complementary, not adversarial.

The YGG mother token still plays a critical role. It represents ecosystem-wide governance, long-term vision, and shared infrastructure. It’s the connective tissue between subDAOs. Treasury strategy, partnerships, and cross-ecosystem decisions still live at that level.

In other words, the mother token governs the system. SubDAO tokens govern the execution. That separation reduces friction. Instead of fighting over global parameters that don’t affect everyone equally, local decisions stay local. Global decisions stay global. Alignment improves because incentives are scoped properly.

Critics often worry about dilution, but dilution only happens when value creation doesn’t keep up with token issuance. In YGG’s model, subDAO tokens are backed by real activity scholars onboarded, assets utilized, communities managed. They don’t magically extract value from the mother DAO they generate new value streams. Another important factor is experimentation.

SubDAO tokens allow different economic models to be tested in parallel. Different payout structures. Different governance styles. Different growth strategies. Some will fail. Some will succeed. The mother DAO doesn’t need to bet everything on a single approach. That’s not fragmentation that’s risk management.

From a contributor standpoint this structure feels fairer. People working closest to the ground see a clearer connection between effort and outcome. That builds trust. And trust is the hardest thing to maintain in decentralized systems.

I have also noticed something subtle but important: subDAO tokens encourage responsibility. When local leaders know their decisions directly impact their token’s performance, incentives change. Short-term extraction becomes less attractive. Sustainability becomes personal. Of course, this model isn’t without challenges.

Coordination between tokens requires clear communication. Governance boundaries must be respected. Treasury flows need transparency. Without those, confusion sets in quickly. YGG didn’t get this perfect from day one it iterated, adjusted, and sometimes corrected mistakes publicly. But that willingness to adapt is the point.

What YGG is really experimenting with here is federalism in DAOs. A shared constitution, multiple states. Central coordination without centralized control. Local autonomy without isolation.

If Web3 ecosystems continue to grow, I don’t see how they survive without structures like this. One token can’t represent every nuance of a global, human-driven system. And trying to force it usually leads to disengagement or inefficiency.

Yield Guild Games didn’t introduce subDAO tokens to complicate things. It did it to reflect reality. And reality, as always, is decentralized first governance just learns to catch up later.
@Yield Guild Games
#YGGPlay
$YGG

ConstitutionDAO token drifts lower with no new catalysts in sight.
What's Happening:
$PEOPLE drops 4.64% to $0.0088 - relatively low volatilityLack of specific news or catalysts driving price action24h range from $0.0085 to $0.0094 Fear & Greed at 24 favoring major assets over legacy memes
Why It Matters: PEOPLE remains a legacy meme from the 2021 era. Without a current narrative (like elections or new DAO initiatives), it trades as a high-beta proxy to Ethereum but with less liquidity.
Technical View: PEOPLE holding $0.0085 support. Resistance at $0.0094. Volume drying up suggesting lack of interest.
🎯 Key Levels:
Support: $0.0085 | Resistance: $0.0094 24h Range: $0.0085 - $0.0094
💡 DAOs made history - but history doesn't always pay range bills
What's your take? Drop a 🔥 for bullish, ❄️ for bearish 👇
#PEOPLE #ConstitutionDAO #MemeCoin #DAO #Crypto
Disclaimer: This content is for educational purposes only and should not be considered financial advice. Always do your own research (DYOR) before making any investment decisions.