Aave Labs Faces Investigation Amid Controversy Over Alleged $10M Losses

Revenue Dispute: Aave community faces tension over a recent integration with CowSwap that redirected swap fees away from the Aave DAO, leading to claims of potential annual revenue losses exceeding $10 million from tokenholders.

Governance Backlash: Delegates and service providers are clashing over ownership rights and revenue distribution, with concerns that the new fee structure sidelines tokenholders and undermines DAO interests.

Labs Defense: Aave Labs counters criticism by highlighting its long-term contributions to protocol innovation and asserting that revenue from core developments continues to benefit the DAO, despite the recent changes.

Future Implications: The ongoing governance discussions reflect a critical juncture for Aave, as both delegates and service providers seek clarity on revenue rights and operational autonomy, with unresolved tensions potentially impacting future DAO dynamics.