Aave Contributor BGD Labs Steps Down as DAO Shifts

TL;DR

• BGD Labs ends Aave DAO role after nearly four years.

• Firm cites governance alignment and centralization concerns.

• Aave RWA deposits surpass $1B amid DeFi TVL decline.

• Proposed security retainer would cost $200,000 through June.

BGD Labs has announced it will not renew its engagement with the Aave DAO after April 1, 2026. The firm has served as a core technical contributor since early 2022.

In a forum post, BGD Labs said it will complete existing responsibilities before its contract ends. These include work on Aave v3, Umbrella, chain expansions, asset onboarding, and security.

The company said it will publish documentation and maintenance guidelines to support continuity. It also proposed an optional two-month security retainer from April through June 2026.

The proposed retainer would cost $200,000 and require DAO approval. Under the plan, BGD Labs would remain available for security incidents affecting Aave v3 and governance systems.

Governance Alignment and v4 Development Dispute

BGD Labs stated that governance alignment concerns influenced its decision. The firm pointed to changes in Aave’s organizational structure as Aave Labs assumes a more central development role.

Aave Labs, as we reported recently, proposed directing 100% of protocol revenue to the DAO treasury. It also requested funding to support development work and prioritized the rollout of Aave v4. The proposal outlines coordination between the DAO and Aave Labs. It also suggests gradually winding down Aave v3 eight to twelve months after v4 launches.

BGD Labs described the current environment as an “asymmetric organizational scenario.” The firm cited concerns over brand control, communication channels, and voting influence.

“In summary, we stop contributing because the environment no longer aligns with how we operate,” BGD Labs wrote in its statement.

The firm also noted that contributors were asked to advise on v4 without incentives or involvement in its design.

Aave v3 Infrastructure and Protocol Status

BGD Labs described Aave v3 as the “crown jewel” of the ecosystem. It said the protocol’s core systems are in a “very solid and future-proof state.”

The company has led or contributed to multiple core technical subsystems. These include governance infrastructure, operational procedures, and safety mechanisms. According to the statement, governance infrastructure can function without major changes. BGD Labs said it believes Aave’s systems can operate indefinitely in their current form.

The departure comes at a time of broader shifts in decentralized finance. Data shows DeFi total value locked has fallen about 25% in the past month to $95 billion.

Aave RWA Growth Amid Capital Rotation

While DeFi TVL declined, Aave reported growth in tokenized real-world assets. The protocol’s cumulative RWA deposits surpassed $1 billion.

Through Aave Horizon, the platform introduced tokenized RWAs and reached $600 million in deposits by January 2026. In less than a month, deposits doubled, with $527 million active on-chain.

Industry data indicates the RWA sector grew 8.68% over the past month to $25 billion. Tokenized U.S. Treasury debt, commodities, and private credit recorded monthly increases.

Aave is the first lending protocol with over $1 billion in RWAs deposited. pic.twitter.com/H9d4Nh0Aol

— Aave (@aave) February 19, 2026

U.S. Treasury tokenization reached $10.7 billion in distributed value. Commodities stood at $6.9 billion, while private credit totaled $2.9 billion. BGD Labs’ exit marks a transition period for Aave’s development structure. Consequently, the DAO will determine next steps through governance processes as it prepares for Aave v4.