Aave's Strategy Leads DeFi with $6B Borrows, $120M DAO Earnings

Aave, a leading entity in the decentralized finance (DeFi) sector, has demonstrated remarkable financial performance with close to zero token incentive spend and approximately $6 billion in outstanding borrows. The strategic plan initiated in November 2022, supported by the Aave Decentralized Autonomous Organization (DAO), aims to eliminate AAVE token spending entirely, replacing it with wETH and GHO distributions to stakers. This move is projected to maintain a net profit of $45 million. Aave's success is attributed to its focus on product quality over narrative or venture capital interests, with the Aave DAO currently earning over $120 million annually. This financial health positions Aave to lead in the next generation of protocol development and network expansion, with expectations to scale DeFi to trillions.