Aave DAO Founder Marc Zeller Releases Report Revealing Issues with Aave Labs

CycleProphet · 2026-02-25T08:50:33+00:00

Aave DAO founder Marc Zeller released a report criticizing Aave Labs for significant issues in fund utilization, product development, and governance participation, pointing out its unauthorized transfer of $5.5 million, lack of achievements in product development, annual revenue contributed by other service providers, and refusal to meet transparency requirements when applying for new funding proposals.

CycleProphet

2026-02-25 08:50:33

Abstract generation in progress

Deep Tide TechFlow News, February 25 — Aave DAO founder Marc Zeller released a comprehensive report criticizing Aave Labs for significant issues in fund usage, product development, and governance participation. The report states that Aave Labs has accumulated $86 million in funding and 23% of the initial tokens, yet their product development record shows 0 wins and 6 losses, and no accountability reports have been published.

The report reveals that Aave Labs transferred approximately $5.5 million in transaction fee revenue without approval and used 663K undisclosed voting rights to block transparency proposals. Notably, the annual revenue of the Aave V3 protocol, $140 million, is mainly generated by other service providers like BGD Labs, not Aave Labs.

At the time of this report, Aave Labs is seeking DAO approval for a new $51 million funding proposal but refuses to meet the community’s transparency requirements. Meanwhile, core development team BGD Labs has announced they will leave the Aave ecosystem on April 1.

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