TheBlock
Aave founder Stani Kulechov publicly rejected a reported takeover approach from Payward, the parent of crypto exchange Kraken, saying AAVE isn't for sale "at a 70% discount." CoinDesk reported Payward is in talks to buy a 15% stake in the protocol at a $385 million valuation, a figure Kulechov argues severely undervalues Aave's fully diluted valuation.
Why it matters
The dispute turns on how to value a DeFi protocol whose governance token trades at a steep discount to the revenue it routes through the DAO. Kulechov earlier this year submitted a governance proposal redirecting all Aave Labs, protocol, and product revenue to the Aave DAO and AAVE holders. If accepted at full valuation, that revenue pipe reframes the protocol's worth well above a 15% minority stake priced off current spot.
Market impact
Kulechov's public pushback signals the deal, if it advances, will be contested inside Aave governance. A $385M valuation for 15% implies roughly a $2.6B fully diluted tag, far below comparable DeFi lending peers trading on multiples of treasury plus fees. Watch the next DAO vote: any formal Payward proposal will need a token-holder majority, and the founder has now made the discount the central issue.
Aave governance has historically been receptive to strategic deals when priced near token-market levels. A 70% gap to FDV is the kind of spread token holders rarely approve without serious concessions attached.
Frequently asked questions
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Who is bidding for Aave?
Payward, the parent company of crypto exchange Kraken, is reportedly in talks to buy a 15% stake in the Aave protocol at a $385 million valuation, according to CoinDesk.
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Why did Stani Kulechov reject the offer?
Kulechov said AAVE isn't for sale "at a 70% discount," arguing the $385M valuation for a 15% stake severely undervalues Aave's fully diluted valuation relative to its spot price.
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What valuation did Payward reportedly offer?
Payward is reportedly in talks at $385 million for a 15% stake, which implies roughly a $2.6 billion fully diluted valuation, far below comparable DeFi lending peers.
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What governance proposal did Kulechov push earlier this year?
Kulechov submitted a governance proposal redirecting all Aave Labs, protocol, and product revenue to the Aave DAO and AAVE token holders, reframing the protocol's worth above minority-stake offers priced off spot.
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What happens next in the Aave-Payward talks?
Any formal Payward proposal would require a token-holder majority in Aave governance. Kulechov's public rejection makes the FDV discount the central issue ahead of any DAO vote.
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