TVL Misleads DeFi Valuations; Loan Book Matters
One of the biggest mistakes in valuing DeFi lending protocols is using TVL as the primary metric. TVL measures net collateral. It does not measure lending activity. Compare Aave vs SoFi at the end of 2025: Aave ~$52B supplied ~$22B active loans (the loan book) ~$700M+ borrowing interest flows ~$150M retained by the DAO SoFi ~$37.5B deposits ~$38B loan book ~$1.8B lending revenue (interest earned) ~$481M net income In TradFi: deposits are liabilities / cost of capital loans are the earning assets lenders are analyzed on loan books, interest income, spreads, and asset growth But in DeFi, the market mostly looks at TVL and DAO-retained fees. That’s like valuing a bank only on net interest spread while ignoring the size of the loan book and gross interest flows. Under traditional financial accounting frameworks, Aave looks far closer to a +$700M lending business than a $150M revenue protocol to be comparable (without counting equity). TVL is not the revenue basis for lending protocols. Loan books and interest flows are.
Aave Prioritizes Revenue Growth and Diversified Streams
Revenue is critically important for DeFi protocols. Sustainable, consistent revenue is what proves that DeFi can evolve beyond pure token speculation into durable businesses backed by balance sheets. Aave will always follow a revenue-led protocol strategy. Over the next 12 months,...
Kraken Ink Shows Exchanges Will Go On‑Chain First
Kraken Ink has been one of the most successful Aave deployments, structured as a white-label lending market with full ownership that provides onchain DeFi infrastructure for a centralized exchange. Eventually, all exchanges will transition their backends to onchain-first systems.
Aave V4 Introduces Two‑Layer Hub‑Spoke Isolation Model
Aave V4 is gaining momentum during its capped launch phase. One of its most compelling innovations is the new market structure: collateral is isolated across separate Hubs and further segmented into Spokes, creating a two-layer isolation model, while liquidity sharing...
Aave sGHO Rate Jumps to 4.25% APR, No Penalties
Aave Savings Rate sGHO has been upgraded to 4.25% APR. No cooldown, no slashing, no lending out.
WETH LTVs Restored; Borrowing Resumes on Aave
The next step in the rsETH technical recovery plan has been completed with the restoration of WETH LTVs to their pre-incident levels across all affected networks. Users can now once again borrow against WETH on Aave, including through collateral and...
RsETH Withdrawals Restored Across Kelp and Aave
rsETH milestone update: - Kelp unpaused rsETH enabling withdrawals for rsETH (bridging also enabled) - Aave unpaused rsETH across all relevant markets enabling rsETH withdrawals from Aave Last steps of the major recovery operation under way.
Aave Raises Bug Bounty Caps Across All Contracts
Aave has increased bug bounty program caps across all smart contract surfaces and the broader application stack. Grateful to all bug bounty participants helping to make DeFi more resilient.
Clarity Act Essential for US DeFi Leadership
The latest market structure bill markup just dropped, and I want to highlight how important it is for DeFi. The Clarity Act is fundamental to giving DeFi developers the confidence to build in the US, backed by strong developer protections. If the...
Aave V4 Hits Milestone with Controlled, Incentive-Free Launch
Aave V4 reached a new milestone. Launch is still controlled and guarded with periodic cap increases, no incentives, no points.
Judge Clears rsETH Funds, Aave Moves to Restore Bridge
Update on the rsETH recovery. Judge enabled the Arbitrum recovered funds to be moved to Aave LLC address. Next steps of the recovery starts by backing the rsETH bridge. ETH LTV moving back to normal. Aave never stops fighting for the users and for...
Arbitrum DAO Votes to Unfreeze ETH, Boosts De
Arbitrum DAO proving to be a real DAO and in favour for restoring DeFi. DeFi United.
Attacker’s rsETH Positions Liquidated on Ethereum, Arbitrum
As part of the technical implementation plan for rsETH recovery, the attacker’s position has now been liquidated on both Ethereum and Arbitrum. This was an incredible technical effort by all contributors involved. Following up with the next steps shortly.
Aave Files Emergency Motion to Vacate Arbitrum Restraining Notice
Aave LLC filed an emergency motion today to vacate the restraining notice served on Arbitrum DAO, rejecting the baseless claim that stolen property title belongs to the thief. We will keep fighting for the DeFi community. DeFi United.
DAOs Move Fast When Communities Mobilize Together
DeFi United has been the largest DAO coordination I've been ever involved, at least 6 different DAOs with governance proposals (Arbitrum, Aave, EtherFi, Lido, Compound and Mantle). DAOs and coordination sometimes are seen as low velocity, however, when the communities need...
Mantle's rsETH Loan Proposal Hits Snapshot Vote
Mantle proposal to contribute to restore rsETH progressed to Snapshot. This is a conditional to progress on restoring rsETH backing for all DeFi. DeFi United.
Arbitrum Council Proposes Releasing Frozen ETH to DeFi United
Proposal to release ETH frozen by Arbitrum Security Council to DeFi United. This is a conditional step to progress with recovery efforts to restore rsETH backing.
Dream Hire Joins Forces to Scale DeFi Credit Markets
Been waiting for this moment and has been a dream hire for me. I've been working with Luigi since early DeFi days, and finally now on the same team. We're going to build credit markets at internet scale.
Technical Plan Unveiled to Restore rsETH Backing Soon
We released a Technical Implementation Plan for restoring rsETH backing. The sequences of execution starts in the following days.
Avalanche Foundation Backs DeFi United, Reinforces Aave Partnership
We appreciate the support from the Avalanche Foundation for DeFi United. Avalanche has been a great long-term partner to Aave, and it’s great to see them stepping in when needed.
Consensys and Joseph Commit 30,000 ETH to Rescue DeFi
Pleased to announce that @ethereumJoseph and @Consensys are joining the DeFi United recovery efforts with 30,000 ETH to fully back rsETH and help restore confidence in DeFi. This is substantial support in the spirit of strengthening the DeFi ecosystem. Grateful for...
Babylon Boosts DeFi United with Aave Liquidity
Babylon team joins to support DeFi United movement by supplying liquidity into Aave. Grateful for the help from one of the best builders in the space.
Alex's Team Elevates DeFi to Institutional-Ready Standards
Really appreciate this contribution. Alex and his team are among the smartest people in the space and are helping bring DeFi to institutional readiness.
DefiUnited.eth Accepts Donations to Restore rsETH Safety
defiunited.eth is now open for contributions. All contributions are going towards DeFi United relief efforts to restore rsETH and safe DeFi. https://t.co/gdkGe5pi0e
Expanding Community Contributions Strengthens DeFi United’s Future
DeFi United Update: Thank you for all contributions so far and we are discussing for more to strengthen the position. I am very grateful for all the support so far. It's been a difficult week and more work ahead. However with...
Decade‑Long DeFi Partnership Unites to Solve Aave
Grateful for this contribution. Emilio has been side by side working on Aave for almost a decade when DeFi wasn't a thing and we were called ETHLend (if anyone remembers). Now its time to put all efforts to unite under...
DeFi United Advances, Yet Still Needs Final Push
This is a good thread to follow DeFi United contributions. Progressing, however more work to do to get over the line.
Frax Partners with Aave to Stabilize DeFi Post‑rsETH
Frax is creating a community proposal to support DeFi United. They didn't have direct exposure to rsETH and want help to bring stability into DeFi.
Mantle Pledges 30k ETH Loan for rsETH Relief
Mantle coming in with a 30 000 ETH backstop to support DeFi United to remediating the impact of rsETH incident. DeFi United.
Golem DAO Contributes 1000 ETH to Aave Relief
Really grateful to see a donation from one of the oldest DAOs in the Ethereum community. Golem is joining DeFi United with 1000 ETH contribution for the relief effort.
Aave Founder Pledges 5,000 ETH to DeFi United
Aave is my life's work and we're working nonstop to find the best possible outcome for users. I’m personally contributing 5000 ETH to DeFi United as we continue working together with partners on formalizing more commitments. I’m working to see this...
EtherFi Pledges 5k ETH to Safeguard DeFi via rsETH
EtherFi Foundation contributing 5k ETH to rsETH relief vehicle. More community members are stepping in to a united effort to support DeFi.
Lido DAO Pledges 2,500 stETH for rsETH Relief
DeFi community is coming to contribute to relief efforts of rsETH. Great to see this proposal from Lido and more to come.
Aave Prioritizes Users, Seeks Strong Resolution After $70M Recovery
The past few days have been intense, but I wanted to give some updates as we continue to work on this. Our priority is our users, and every decision we are making is aimed at an orderly return to normal...
RsETH Frozen on Aave; No Borrowing Power, No Exposure
rsETH has been frozen on Aave V3 and V4, the asset does not have any borrowing power as a measure due to KelpDAO bridge exploit that happened outside of Aave. Both Aave V3 and V4 does not have further exposure...
Aave V4 Caps Raised, Security-First Rollout Continues
Aave V4 caps have been increased. Our focus remains on a security-first launch, and caps will be gradually increased over time as they get filled.
Aave V4 Hits $10M in Loans, Shows Growing Adoption
Aave V4 has surpassed its first $10M in outstanding loans since inception. While our focus remains on a secure launch, it’s encouraging to see users exploring Aave V4. https://t.co/KJSHsYRJMt
Aave Will Win Adds Swaps, Horizon Fees to Treasury
With Aave Will Win proposal now swaps and Horizon fees are routing to $AAVE treasury expanding the revenue streams from protocol to include product layer and RWAs. Aave will win. https://t.co/CNB5cSiAob
Fireblocks Earn Adds Aave as Primary Yield Source
Aave is now available as the primary yield source for Fireblocks Earn, accessible to all Fireblocks users.
Aave Targets $400T On‑Chain Collateral, Poised to Win
Aave has grown significantly and taking market share. The bigger growth pie is still ahead: bringing $400T+ onchain collateral. We are talking about: credit, commodities, equities, fixed income, infrastructure, bonds and real estate. Aave will win.
DeFi Must Prioritize Application Security Amid DNS Threats
In light of recent DNS attacks, it is clear how important it is to invest in application and ICT security. Web2 security is often easily overlooked in DeFi, and this is an area where much more attention is needed. Serious DeFi projects...
CowSwap Front-End Under Attack; Use Aave via ParaSwap
CowSwap front-end (not related to Aave) is experiencing web2-style attack. Avoid interacting with the interface until further notice from their team. Aave interface swaps are routed via ParaSwap to ensure continuity. Stay safe.
Aave's Landmark Vote Makes DAO Treasury Token‑Centric
Aave Will Win, the most important proposal in Aave's history just passed with a landslide. Here's the master plan going forward: General Direction - Aave becomes fully token-centric: one asset, one model: $AAVE - To date, protocol revenue per AIP-1 has accumulated to the...
Aave Achieves SOC 2 Compliance, Raising DeFi Standards
Aave products and endpoints are now SOC 2 compliant, ensuring strong operational and security compliance, setting a new standard for DeFi application layer.
BTC.b Becomes First Native Bitcoin on Aave V3
BTC.b is a native Bitcoin product at custody and available as a collateral directly on Aave.
Aave Compatibility on Monad Faces No Technical Blockers
We published a technical analysis for @aave compatibility on Monad. tl;dr no technical blockers for deployment.
DeFi Networks Poised to Surpass Traditional Banks
55 in the ranking (source https://t.co/suMvdUMFk9). Lot of work to climb to #1 and prove that networks > banks Eventually all banks will be powered by DeFi https://t.co/rSIg09rBQX
Aave V4 Hits $10M Deposits, Core ETH Caps Full
Aave V4 crossed $10M in deposit. Core ETH caps are filled now (other assets and borrowing is available) and will be gradually increased.
Aave V4 Unlocks Shared Liquidity for Builders
This post resonates well with me. One of the main objectives for V4 was to enable builders to tap into a shared liquidity layer and unlock capital into new use-cases. This is now possible with the Hub and Spoke modular...
ETH Supply Caps Filled on Core, Proposal Pending
Third. ETH supply caps also filled on Core. Proposal coming to increase the supply caps. No incentives, no points, just the protocol. Security first. https://t.co/G1buhh8sCs