Aave governance dispute escalates, ACI founder releases Aave Labs "audit" report questioning the $51 million fund application

CycleProphet · 2026-02-25T12:11:03+00:00

Aave Chan Initiative founder Marc Zeller released an audit report questioning Aave Labs' lack of transparency. The report states that Aave Labs received approximately $86 million in funding and accuses it of redirecting fees without governance approval. Zeller questions whether the DAO should support its $51 million funding application before addressing transparency and accountability issues.

CycleProphet

2026-02-25 12:11:03

Abstract generation in progress

Deep Tide TechFlow News, February 25, According to The Block, Marc Zeller, founder of the Aave Chan Initiative, released an “audit” report on Aave Labs, which sparked controversy before Aave Labs’ $51 million new funding vote. The report states that Aave Labs has raised approximately $86 million in total capital, including $16.2 million from ICO funds, $32.5 million in venture capital, $3.193 million paid directly by the DAO, and about $5.5 million in “unauthorized” exchange fees.

Zeller questioned Aave Labs’ lack of transparency, specifically pointing out that the actual size and benefits of the Horizon market are far below surface data, and accused Labs of redirecting partner fees without governance approval. The report raises key questions: should the DAO support this record-breaking funding application before addressing accountability and transparency issues.

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