Aave (AAVE) Crypto News Today

The vote passed with nearly 75% in favor. Other elements of the framework, including the growth and development grants, will have separate governance proposals.

DeFi risk manager Chaos Labs said Aave’s planned migration to Aave V4 introduced risks that it wasn’t willing to assume, while Aave said Chaos wanted to take on full control as the sole risk service provider.

A Bank of Canada staff paper found Aave V3 avoided bad debt in 2024, but said the model pushed losses onto borrowers during liquidations.

The rollout includes Aave Pro for advanced users and integrates Chainlink to provide oracle data for V4 markets.

OKX’s X Layer is the 21st blockchain to integrate Aave, which recently surpassed the $1 trillion mark in cumulative lending volume.

An ECB working paper found DeFi governance remains highly concentrated, complicating efforts to identify who should fall under MiCA oversight.

Aave founder Stani Kulechov says the proposal will move to a binding onchain vote to formalize V4’s deployment on Ethereum.

A small pricing error in wstETH collateral caused $27 million in Aave liquidations, highlighting the critical role of price oracles and automated risk systems in DeFi.

In a post-mortem of the incident, Aave clarified it was not slippage, but an illiquid market that caused the trader to lose over $50 million while swapping USDT for AAVE.

Aave founder Stani Kulechov says a user confirmed a warning to proceed with the swap, despite “extraordinary slippage,” while a MEV bot also attacked the large transaction.

Capo, an external oracle solution used by Aave, triggered around $27 million in liquidations after a pricing glitch, but the lending platform said it is stepping in to cover the losses.

A proposal to transfer control of Aave’s brand assets and intellectual property to its DAO failed in January, prompting debate over the protocol’s long-term direction.

Bitcoin bounced back this week as stablecoin inflows surged, and DeFi faced fresh pressure from Aave governance strife, exploits and exchange security moves.

The move follows a 52.58% Snapshot vote on a $42.5 million funding package for Aave Labs, now headed to the ARFC stage before any binding onchain decision.

Tokenholders backed a $42.5 million stablecoin package and 75,000 AAVE allocation for Aave Labs under a proposed DAO-funded revenue model.