- BGD Labs, the key developer of Aave v3, is ending its service contract with the Aave DAO on April 1.
- The departure follows months of internal conflict, including disputes over brand control, diverted fees, and Aave Labs‘s increasing influence.
- The Aave governance token fell 6% on the news and is down over 40% since tensions began flaring in late 2025.
- Founder Stani Kulechov expressed respect for the decision, while key DAO members called the loss “devastating.”
- BGD Labs cited an “asymmetric organisational scenario” and a lack of collaboration as primary reasons for leaving.
The longstanding service provider BGD Labs will cease its contributions to the Aave DAO on April 1, according to a post on the protocol’s governance forum. This decision marks a pivotal moment in an ongoing internal struggle that has shaken one of DeFi‘s largest lending protocols.
However, the firm cited an “asymmetric organisational scenario” fueled by Aave Labs‘s growing dominance. Consequently, BGD Labs expressed frustration over the perceived snub of v3 and a lack of constructive feedback.
The news followed months of escalating tensions, which began in December with the discovery that Labs had diverted front-end swap fees. Consequently, former CTO Ernesto Boado authored a proposal to transfer brand assets to the DAO.
Meanwhile, community reactions reflected deep concern over the protocol’s decentralized future. ACI’s Marc Zeller called the loss “devastating,” while contributor Ezreal stated “actions cause reactions.”
Founder Stani Kulechov, who recently purchased a $30 million London mansion, insisted he was buying the dip. He publicly stated, “I respect BGD’s decision and I am sad to see them go.”
The market reacted immediately, with Aave’s governance token dropping 6% on the announcement. It has now fallen over 40% since the internal conflicts began, slightly more than Ethereum‘s 35% drop over the same period.
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