After four years, we can finally announce that the U.S. Securities and Exchange Commission (SEC) has concluded its investigation into the Aave protocol. Our team, and I as the founder, have dedicated immense effort and resources to protecting Aave, its ecosystem, and the wider DeFi space. DeFi has faced unfair regulatory pressure in recent years. We are excited to overcome these challenges and enter a new era where developers can truly build the future of finance. DeFi will prevail.

To prevent initial liquidity rounding attacks, the math library for #AAVE V4 adds two dummy variables that are taken into account when calculating the exchange rate between stocks and assets.

$AAVE is aligned.

👨‍🎓 The newly hired Dr. Adam Roper is expected to bring a wealth of metallurgical knowledge to this ambitious antimony producer.

@aave V4 Audit Competition: 14 days left to prove yourself.

I'd like to clarify some recent misunderstandings regarding the $AAVE token in my personal capacity. Some have claimed that the recent DAO discussions mean the $AAVE token is no longer relevant. This is completely false. The $AAVE token is used to govern the Aave protocol, which is the source of the *vast majority* of its revenue. The protocol has generated nearly $150 million in revenue over the past year through fees from lending, liquidation, and flash loans. This revenue is controlled by $AAVE holders through governance mechanisms and used for purposes such as token buybacks. No service provider or agent, including Aave Labs, can arbitrarily change these *protocol-level* parameters. This requires a governance vote. This applies to both V3 and V4.

Maple assets held on the @aave platform have exceeded $600 million in less than two months, encompassing both @ethereum and @Plasma tokens. This is truly scalable and capital-efficient DeFi. Simply use syrupUSDT on Aave.

More noteworthy in these discussions is how much of Aave's success over the years is attributable to Aave Labs/Avara, and the sheer challenge of operating a true company as a DAO. DAOs are structurally incapable of delivering competitive software. Every product decision becomes a governance proposal, every directional shift requires consensus among token holders, and every rapidly growing opportunity dies in forum posts while competitors have already acted. In fact, if Aave had been governed entirely as a DAO from the beginning, it would have been surpassed years ago by teams capable of making decisions in hours, not weeks or months. Stani and Aave Labs built the brand, user experience, integrations, and security infrastructure, and token holders now claim economic ownership of these assets. They were able to do this because they operated with startup-level autonomy, not DAO-level bureaucracy. World-class software isn't built by committees of contractors and rotating service providers, but by tightly integrated internal teams with deep background knowledge, a shared vision, and the ability to accumulate expertise over many years. Finally, restricting Labs and depriving it of its right to share in the protocol's revenue is objectively unfair and, in the long run, detrimental to both the DAO itself and Aave token holders.

I will post these calculations regularly, but currently borrowing rates on @aave are very low, and I haven't mentioned ETH yields in a long time. So, here's the calculation of the best long-term ETH yield over the past few years: In short: weETH has an annualized yield (APR) of 16% and can be accumulated indefinitely. The strategy is quite simple: ➢ Maximize the leverage of @ether_fi's weETH on Aave Why weETH? Because it offers a 3% annualized yield (APY) instead of the base 2.5% staking yield. weETH has a maximum loan-to-value ratio (maxLTV) of 93% in E-Mode. A 93% loan-to-value ratio means we can achieve over 14x leverage on weETH. The calculation is also straightforward. ➢ Maximum Leverage = 1 / (1 - Maximum Loan-to-Value Ratio) 14.28 = 1 / (1 - 0.93) Then, to calculate the net annualized return (APR) of this strategy, we can use another simple formula: ➢ Net Annualized Return (APR) = Annualized Collateral Yield * Leverage - (Leverage - 1) * Borrowing Costs Therefore, in this example, 3% * 14.28 - 2 * 13.25 = 16.34% Very simple. And since this strategy uses a basic oracle, the only liquidation risk is that borrowing costs will be unfavorable to you. Another risk is large-scale staking withdrawals, which can become difficult to exit during periods of high interest rates. This strategy is generally best executed long-term, lasting at least one month. Combined with your usual ETH shorting (on your preferred PERP exchange), it can earn credits and generate over 10% delta-neutral returns.

Using Native Bitcoin as Collateral in Aave @babylonlabs_io will build a Bitcoin-only Spoke node on Aave V4, allowing users to use native Bitcoin as collateral for the first time. Users use the Babylon Bitcoin Vault to lock their real Bitcoin at the Bitcoin L1 layer. The Vault generates verifiable proofs that the Bitcoin has been securely locked. ⤷ @aave V4 accepts this proof, allowing users to borrow stablecoins or other assets using their Bitcoin. Trustless Bitcoin staking has activated over $6 billion of native Bitcoin and partners with top finality providers such as @Lombard_finance and @SolvProtocol. ⤷ Trustless Bitcoin Vault extends this functionality to the broader $1.7 trillion Bitcoin market. For Bitcoin holders: ➞ Transform “dormant” Bitcoin into productive capital ➞ Earn yield and borrow liquidity while retaining ownership. For DeFi: ➞ Unlock massive new liquidity pools. Babylon already holds over 50,000 bitcoins, which Aave V4 can now use as high-quality collateral. This opens up a huge new market: Bitcoin-backed loans worth hundreds of billions of dollars.