DeFi Lending Leader Aave's Revenue Model Major Change: 100% Profit Sharing with DAO

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AAVE1,43%

DeFi Lending Leader Aave Officially Introduces the New Aave Will Win Framework, Centered on a Token-Based Value Alignment Mechanism: All future revenue from Aave branded products will be fully funneled back into the Aave DAO treasury, strengthening protocol value accumulation and long-term governance capabilities. According to data provided by the Aave team, the five major business segments could generate an additional revenue of approximately $120 million to $400 million.

Aave Will Win Framework Protocol Revenue 100% Reinvested into DAO Treasury

The Aave team states that the purpose of the Aave Will Win Framework is to unify the economic interests of product and protocol layers, laying a foundation for competition over the next decade, and positioning Aave as “one of the DeFi protocols with the strongest value capture ability.”

According to the proposal, all revenue from the following Aave branded products will in the future be fully directed into the DAO treasury:

Aave website and main app (aave.com)

Aave Mobile App

Aave Card

Aave Pro (Institutional Version)

Aave Kit (Development Tools)

Aave Horizon (New Product Line)

A major past issue in DeFi was that successful products did not have their value flow back to tokens or governance layers. This proposal explicitly declares that all commercial achievements will be converted into long-term value for the DAO and AAVE holders.

Aave Lending Protocol Potential Annual Revenue of Several Hundred Million Dollars

The proposal also discloses multiple future revenue sources and estimated annualized potentials:

LP Refinance (no need to unwind positions) annual revenue potential: $15 million to $41 million

Fixed-rate lending (institutional demand) annual revenue potential: $14 million to $140 million

OTC large-scale lending annual revenue potential: $52 million to $105 million

Secondary market debt trading annual revenue potential: $10 million to $50 million

RWA/LP Collateral annual revenue potential: $27 million to $90 million

If fully implemented, the additional revenue could reach approximately $120 million to $400 million, indicating that Aave is actively expanding into institutional finance and on-chain credit markets.

This article, “DeFi Lending Leader Aave Overhauls Revenue Model: 100% Profit Reinvestment into DAO,” first appeared on Chain News ABMedia.

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