BGD Labs Confirms Aave Departure Amid Governance Shift

TLDR

• BGD Labs announced it will end its contributions to Aave DAO on April 1 after nearly four years of work.
• The firm said it will continue supporting Aave v3 and related infrastructure until its contract expires.
• BGD Labs cited governance tensions and structural shifts within the Aave ecosystem as reasons for its departure.
• The company described an asymmetric organizational scenario involving Aave Labs’ growing control.
• Aave Labs has proposed directing all protocol revenue to the DAO treasury while seeking funding for development.

BGD Labs confirmed it will end its work with Aave DAO on April 1, closing nearly four years of technical leadership. The firm said it will complete its current service agreement and assist with a transition plan. The announcement follows governance friction and structural changes within the Aave ecosystem.

Aave Governance Shift and Development Disputes

BGD Labs informed the Aave community through a forum post on Friday. The firm said it wants to ensure continuity before its contract expires. It will continue supporting Aave v3, Umbrella, chain expansions, asset onboarding, and security until April 1.

The company described Aave v3 as the ecosystem’s “crown jewel.” It said it built and refined its core infrastructure since early 2022. It also stated that governance systems “just work” and can operate without major changes.

BGD Labs linked its departure to structural changes within Aave. Aave Labs has moved to lead Aave v4 development and related initiatives. The firm said this shift created an “asymmetric organizational scenario.”

It argued that Aave Labs controls brand assets and communication channels. It also referenced voting influence within governance processes. The firm said these factors introduce centralization risks in a decentralized framework.

BGD Labs criticized what it called an adversarial stance toward improving Aave v3. It said contributors advised on v4 without incentives or design participation. The firm wrote, “the environment no longer aligns with how we operate.”

Transition Plan and Proposed Security Retainer

BGD Labs said it will publish documentation and maintenance guidelines. It wants other contributors to assume its responsibilities smoothly. The firm pledged full cooperation during the remaining contract period.

It confirmed that Aave’s core systems remain stable and future-proof. The team said infrastructure and safety mechanisms can function indefinitely. It credited years of operational procedures and governance tooling.

Aave Labs recently proposed directing all protocol revenue to the DAO treasury. In return, it requested funding for ongoing development work. The plan includes placing intellectual property under a new foundation.

The proposal prioritizes Aave v4 rollout and coordination with the DAO. It also suggests reducing new feature work on v3. The plan outlines a gradual wind-down of v3 after v4 launches.

BGD Labs proposed an optional security retainer from April through June 2026. The firm would respond to incidents affecting Aave v3 and governance systems. The retainer would cost $200,000 and requires DAO approval.

The firm stated it remains committed to a stable transition. It said it will fulfill all duties through the contract’s end date. The optional retainer now awaits a governance vote.