BGD Labs to End Support for Aave DAO in April

BGD Labs announced it will conclude its four-year role supporting the Aave DAO and will not seek renewal after April 1, citing rising centralization concerns within the ecosystem.

The firm pointed to what it described as an increasingly dominant role played by Aave Labs, particularly in leading the development of Aave v4. BGD argued that strategic direction has shifted in a way that limits meaningful external contribution, while attention toward Aave v3 has declined despite its continued market relevance and security track record.

Although stepping down, BGD Labs said it will ensure a structured transition, completing active initiatives and offering an optional two-month $200,000 security retainer to support v3 and governance systems.

Following the announcement, AAVE fell more than 5%, with price action remaining below its 20-day EMA, signaling continued short-term downside pressure.