Aave has become the first decentralized finance (DeFi) protocol to surpass $1 trillion in total lending volume. The lending giant now holds a total value locked of $27.2 billion and generated $83.3 million in fees in the past month. Its founder, Stani Kulechov, stated the platform now stands as “the backbone of onchain lending,” while a new governance proposal sparks debate over a $42.5 million funding package.
The DeFi lending protocol Aave has crossed $1 trillion in cumulative lending volume, a historic milestone for the sector. The platform operates as a primary hub where users can deposit cryptocurrency to earn yield and borrow against collateral.
Founder Stani Kulechov marked the achievement, stating “Aave stands as the backbone of onchain lending, powering a new financial system that is open, global, and…”. The protocol’s total value locked is $27.2 billion, far ahead of major competitors.
In the past 30 days, Aave accrued $83.3 million in fees from its operations. This revenue significantly outpaces its nearest rival in the DeFi lending space.
The protocol’s Aave Labs team recently launched an institutional-focused product named Horizon. Early participants included VanEck, WisdomTree, and Securitize, which utilized stablecoin loans backed by real-world assets.
Kulechov has identified the tokenization of “abundance assets” like solar and battery storage as the next frontier. He estimates this sector could reach $50 trillion by 2050.
A new governance proposal has ignited discussion within the Aave DAO. The proposal requests holders approve $42.5 million in stablecoins and 75,000 Aave tokens for Aave Labs.
The proposal notes that Aave Labs would direct all revenue from token-branded products to the DAO treasury. The community must now decide on the funding, balancing growth with decentralized governance.
