Aave Labs Drops Avara and Wallet Project to Double Down on DeFi

TLDR

• Aave Labs shuts Avara brand and Family wallet to focus on DeFi growth.

• Lens Protocol was sold after Avara exit; Aave now simplifies under one brand.

• Tensions rise over DAO vs Labs control after frontend fee redirection.

• Aave plans to scale lending as it drops non-core Web3 experiments.

Aave Labs has announced the closure of its Avara umbrella brand and Family wallet as it returns focus to its original decentralized finance (DeFi) mission. The firm confirmed the change in a public update on X, stating that all products would now operate under the Aave Labs name.

The move comes after a series of shifts that included the sale of the Lens social protocol and a growing debate over the division of control between Aave Labs and the Aave DAO. By shutting down its broader branding effort and sidelining consumer wallet projects, Aave Labs aims to concentrate its efforts solely on the Aave lending protocol.

Control Disputes Between Aave Labs and DAO Continue

The decision follows recent disagreements between Aave Labs and the Aave DAO over control of core elements of the ecosystem. In December 2025, Aave Labs added CoW Swap to the Aave.com frontend and redirected swap fees from the DAO treasury to a company-controlled wallet. This raised concerns among token holders about governance transparency.

While the DAO manages protocol-level features such as smart contracts and revenue rules, Aave Labs retains control of external elements like the website, branding, and other public-facing infrastructure. A governance proposal that aimed to transfer control of Aave Labs’ intellectual property to the DAO failed, in part due to high token concentrations held by insiders.

Founder Stani Kulechov later proposed revenue-sharing models and indicated a willingness to re-examine asset ownership questions. Still, the conflict over governance roles remains a central concern for many in the Aave community.

Non-DeFi Projects to Be Wound Down

Avara was introduced as a brand intended to expand Aave Labs beyond DeFi. It once housed projects like the Lens Protocol and the Family wallet, designed for Web3 social media and wallet infrastructure. Lens was sold in January to the Mask Network, and now the Family wallet is also being shut down.

Kulechov said the shift is about consolidating around Aave’s lending platform and its mission to onboard millions into DeFi.

Aave’s mobile app, Aave Pro, and Aave Kit will continue as core product lines under the Aave Labs banner. The recent focus, as a result, includes offering high-yield savings accounts with interest rates up to 9% and insured deposits up to $1 million.

Future Growth Plans and Community Scrutiny

Aave’s strategy as a result includes scaling its lending protocol toward long-term onchain financial activity. The firm has recently completed a multi-year U.S. regulatory review and now aims to bring more institutions into its ecosystem.

However, community attention has also turned to Aave leadership. Bloomberg reported this week that Kulechov purchased a £22 million mansion in London. The news led to public scrutiny amid ongoing governance concerns and debates over resource allocation.

Despite these concerns, Aave remains Ethereum’s largest lending protocol by volume. As the company returns to its roots, it signals a shift back to core DeFi infrastructure under a unified brand identity. Amid this transition, the AAVE price has seen a pullback, trading at $127, a 0.52% decline in the last 24 hours.

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