TheBlock
A Payward-affiliated fund and its clients acquired an undisclosed amount of AAVE through secondary-market purchases, the Kraken parent company announced Thursday. The investment came from Digital Asset Special Investments I, LP, and Payward left open the possibility of further purchases. Financial terms were not disclosed.
Why it matters
AAVE gives holders governance rights over the lending protocol and its treasury. Under the Aave Will Win framework approved in April, revenue from Aave-branded products is routed into the protocol's DAO treasury.
Gurpreet Oberoi, vice president of Payward Asset Management and Institutional, said the investment reflected long-term conviction in onchain credit markets and DeFi, as well as client demand for exposure to financial infrastructure. Aave founder Stani Kulechov described the relationship as a strategic step toward reaching more retail and institutional users.
Market impact
The disclosed purchases put an institutional name behind demand for AAVE, although the size and price of the investment remain undisclosed. Payward said further purchases were possible, not that they were planned or guaranteed.
Kulechov had previously pushed back against a June CoinDesk report that Payward was in talks to buy a 15% stake at a $385 million valuation, then roughly 70% below its actual value. He acknowledged that investors had discussed potentially buying portions of Aave Labs' AAVE allocation through partnership deals.
Frequently asked questions
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Which fund made the AAVE investment?
Payward said the investment came from Digital Asset Special Investments I, LP, through secondary-market purchases by an affiliated fund and its clients.
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How much AAVE did the fund and its clients buy?
Payward did not disclose the amount of AAVE acquired or the financial terms of the investment.
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What rights do AAVE tokens give holders?
AAVE holders have governance rights over the lending protocol and its treasury.
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What happens to revenue under the Aave Will Win framework?
Under the framework approved in April, revenue from Aave-branded products is routed into the protocol's DAO treasury.
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What had Aave's founder said about earlier Payward talks?
Stani Kulechov pushed back against a June report of talks for a 15% stake at a $385 million valuation. He acknowledged discussions about potential purchases of portions of Aave Labs' AAVE allocation.
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