Is the Aave lending protocol a sinking ship?
Let’s be honest, in the DeFi industry such sudden changes at the very top of the hierarchy are rather rare.
Just a few weeks ago, BGD Labs, the brains behind the development of Aave V3, said goodbye to the project.
Two key teams throwing papers in such a short time raises justified concerns even among the most ardent hodlers.
It’s hard not to ask yourself at this point whether the ground is starting to burn in the structures of the well-known giant?
What’s more, the community has the right to demand answers.
Marc Zeller explains the reasons for his departure from Aave
Marc Zeller, founding father of ACI, is trying to save face in the face of his announced departure from Aave.
Although the eight-person team does not renew their contracts, they promise that they will not leave the community with the proverbial “hand in the potty”.
We received an announcement of a four-month “transition period”. What then?
The entire infrastructure of the group is to be handed over to users, and the proprietary tools will be released online as open source code. Sounds reasonable, right?
Yes, this move somewhat cushions the potential damage of these events. Let’s not kid ourselves, however, because patching such holes in the management board will probably take months, and the nervous atmosphere within the ecosystem is unlikely to go away anytime soon.
The Aave chart shows the situation in the project well
The crypto market hates a vacuum, and it hates uncertainty even more.
The effect of these behind-the-scenes squabbles is immediately visible on the project’s native token chart.
In just three quarters, billions of dollars evaporated from AAVE’s price, pushing the exchange rate down to the neighborhood $116.50.
Chart. AAVE token rate (AAVE/USDT)
The AAVE token has been trading since the beginning of the year has already fallen by 30.74%.
It’s hard to be surprised by these sell-offs, because today’s valuation significantly discounts the direction in which the entire protocol is heading.
Aave now faces a truly risky task. The departing team must quickly pass the baton, and developers must, in turn, rebuild trust to think about retaining the leadership position in the DeFi industry.
Time is running out and the competition in crypto never sleeps.
