Marc Zeller, founder of the Aave DAO, released a report exposing issues at Aave Labs.
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Marc Zeller, founder of the Aave DAO, released a report exposing issues at Aave Labs.
Aave DAO founder Marc Zeller released a comprehensive report sharply criticizing Aave Labs for serious issues in fund usage, product development, and governance participation. The report states that Aave Labs has received $86 million in funding and 23% of the initial token supply, yet its product development record stands at 0 wins and 6 losses—with no accountability reports published. The report reveals that Aave Labs unilaterally transferred approximately $5.5 million in protocol fee revenue without DAO approval and leveraged 663K undisclosed voting power to block transparency proposals within governance. Notably, Aave V3’s $140 million annual protocol revenue is primarily generated and maintained by third-party service providers—such as BGD Labs—not Aave Labs. This report comes as Aave Labs seeks DAO approval for a new $51 million funding proposal but refuses to meet the community’s transparency preconditions. Meanwhile, core development team BGD Labs has announced its departure from the Aave ecosystem effective April 1.
Navigating Web3 tides with focused insightsTechFlow reports that on February 25, Marc Zeller, founder of the Aave DAO, released a comprehensive report sharply criticizing Aave Labs for serious issues concerning fund utilization, product development, and governance participation. The report states that Aave Labs has received a cumulative total of $86 million in funding and 23% of the initial token supply, yet its product development record stands at 0 wins and 6 losses, with no accountability reports published.
The report reveals that Aave Labs unilaterally transferred approximately $5.5 million in transaction fee revenue without prior approval and leveraged 663K undisclosed voting rights within governance to block transparency proposals. Notably, the Aave V3 protocol’s annual revenue of $140 million is primarily generated and maintained by third-party service providers—such as BGD Labs—not by Aave Labs itself.
This report comes amid Aave Labs’ ongoing effort to secure DAO approval for a new $51 million funding proposal, despite refusing to meet the community’s transparency-related prerequisites. Meanwhile, core development team BGD Labs has announced its departure from the Aave ecosystem effective April 1.
