Tension between Aave DAO and Aave Labs over Revenue from Integration with CoW Swap
According to Cointelegraph, a new clash has arisen between Aave DAO and Aave Labs, the company responsible for the core development of the Aave protocol, involving the allocation of fees generated by a recent integration with the decentralized aggregator CoW Swap.
The discussion began after the pseudonymous DAO member, EzR3aL, pointed out that the fees from crypto asset exchanges via CoW Swap were not being directed to the on-chain treasury of Aave DAO. Instead, the resources were reportedly flowing to a private address supposedly under the control of Aave Labs. The member questioned the lack of prior consultation with the DAO governance and argued that this revenue should belong to the community.
In response, Aave Labs stated that it has always had control over the front-end components of the website and application interfaces, in addition to having fully financed the development of the so-called “adapters” — fundamental codes that enable exchanges and external integrations.
Despite this, the atmosphere remained tense. Several DAO participants argued that the original development of the adapter technology was initially funded by Aave DAO itself, which would reinforce the community's right to the earnings generated by the integration.
The debate gained even more momentum after Marc Zeller, founder of the Aave-Chan initiative — a delegation platform aimed at Aave governance — expressed concern over the decision. Zeller criticized Aave Labs for directing the flow of Aave users to competing solutions for monetization purposes, labeling the practice as “unacceptable”.
Cointelegraph attempted to obtain an additional position from Aave Labs but did not receive a response by the time of publication. The episode highlights the challenges faced by DAOs in balancing decentralized governance, commercial interests, and operational structures, emphasizing the complexities of this emerging organizational model.
