Aave founder Stani Kulechov has disputed reports that Kraken is negotiating a strategic investment in the decentralized finance protocol, specifically challenging the reported valuation terms. In a post on X, Kulechov rejected the reported $385 million valuation, writing "First off, there is NO WAY we'd sell AAVE at a 70% discount lol," referring to the reported valuation that he said represented only about 30% of AAVE's fully diluted token valuation. Kulechov did not deny that discussions involving Aave-related assets have taken place, instead stating that Aave Labs holds an allocation of AAVE tokens that several market participants have explored purchasing through long-term strategic partnerships. He added that CoinDesk's characterization of the discussions was inaccurate. The core of his objection centers on the fundamental difference between equity in a Swiss company and tokens on a blockchain, emphasizing that AAVE is a governance token that lets holders vote on protocol upgrades and parameter changes through Aave Improvement Proposals (AIPs), not equity in Aave Labs.
According to reports from CoinDesk, Kraken is negotiating a strategic investment in decentralized finance lending protocol Aave through its parent company Payward. The proposed transaction would see Kraken invest 35,000 ETH in exchange for 250,000 AAVE tokens and a 15% common equity stake in Aave Group. A document reviewed by CoinDesk valued the deal at approximately $385 million. Two people familiar with the discussions told CoinDesk that Kraken also plans to syndicate part of the transaction, which carries an estimated value of about $71 million. A Kraken spokesperson declined to comment, while Aave did not respond to the publication's request for comment before the story was published. When reports describe the deal as involving a "70% discount," they are likely comparing the implied token value against the recent market price of AAVE, which is currently around $85 and well below its 52-week high of $386.
The prospective 15% ownership position in Aave would be noteworthy because it could translate into meaningful influence over protocol governance, depending on how voting power is structured and whether tokens are delegated or locked. For a leading decentralized lending protocol that is attempting to stem outflows and reassure users after the KelpDAO incident, a high-profile investment from a major centralized exchange like Kraken could be read two ways: as a vote of confidence that draws back deposits and liquidity, or as a signal that central entities are consolidating influence over previously community-led governance structures. Market participants and on-chain observers will likely scrutinize whether Kraken's involvement would be passive and purely financial, or whether it would seek active governance roles on technical upgrades, risk parameters or treasury management. The actual deal structure involves three distinct assets: ETH for the equity stake, AAVE tokens as part of the package, and Aave Labs equity in a Swiss company, all serving different functions and facing different buyers.
Kulechov highlighted Aave's strong financial performance, stating that the Ethereum-based lending protocol generates about $134 million in annualized revenue, with all of that revenue directed to the Aave DAO rather than Aave Labs. He disclosed that the team is designing Aavenomics 3.0, which will include an automated, non-discretionary buyback mechanism for the AAVE token, although additional details have not yet been released. The founder noted that Aave Labs no longer receives protocol or product revenue because it now serves as a development provider for the DAO. The timing of this investment is particularly significant as Aave continues to absorb the consequences of the KelpDAO bridge exploit in April 2026, which triggered an $8.45 billion deposit run over 48 hours and saw total value locked on the protocol fall from $26.4 billion to $17.9 billion.
As reported by CoinDesk, citing three people familiar with the matter, the proposed Aave investment would become the first in a series of transactions under Payward Asset Management, a business the company intends to use for investments across decentralized finance and other digital asset opportunities. A third source familiar with Payward's plans told CoinDesk that the company has sufficient capital and external partners to support similar deals. The investment would expand Payward's push into blockchain-based financial infrastructure beyond its traditional spot cryptocurrency trading operations. Payward has been aggressively building out as a broader fintech player, having raised capital at a $20 billion valuation in May and already running DeFi Earn products powered by Aave's lending protocol. The company has also bought stablecoin provider Reap for $600 million earlier this year, positioning itself as a financial-services platform that wraps onchain infrastructure in a regulated, user-friendly shell.
