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BGD Labs to Leave Aave DAO on April 1 as Governance Rift Widens

The longtime technical team cites misalignment with Aave Labs’ push to centralize v4 development.

Overview

  • BGD Labs will end its engagement with Aave on April 1 after nearly four years, finishing work on v3, Umbrella, chain expansions, asset onboarding, and security before departure.
  • To support continuity, the team plans to publish maintenance documentation and has proposed a $200,000 security retainer for April–June 2026, pending a DAO vote, to remain on call for incidents affecting v3 and governance.
  • BGD Labs attributes its exit to a growing central role for Aave Labs, saying contributors were asked to advise on v4 without incentives or design involvement.
  • Aave Labs has proposed routing all protocol revenue to the DAO treasury, securing development funding, prioritizing v4, placing IP under a new foundation, and gradually winding down v3 after v4 launches.
  • Aave founder Stani Kulechov said Aave Labs can maintain v3 and signaled support for approving BGD Labs’ proposed retainer as governance discussions proceed.