AAVE Up 0.11% on Aave Labs’ Stable Finance Acquisition

On OCT 25 2025, AAVE rose by 0.11% within 24 hours to reach $226.57, AAVE dropped by 1.04% within 7 days, dropped by 17.44% within 1 month, and dropped by 26.65% within 1 year.

Aave Labs has acquired San Francisco–based Stable Finance, a mobile app that enables users to earn yield on stablecoins through overcollateralized DeFi markets. The move marks Aave’s latest push into consumer-facing crypto services.

The deal, announced on October 23, includes the onboarding of founder Mario Baxter Cabrera and his engineering team. While financial terms weren’t disclosed, the acquisition complements Aave’s recent institutional expansions, including its Maple Finance integration and the Horizon RWA marketplace. With over $37 billion in TVL, Aave is now strengthening its retail presence at a time when demand for on-chain yield continues to grow, even amid regulatory grey zones surrounding stablecoin rewards.

The acquisition also comes as rivals like Coinbase and Crypto.com roll out DeFi yield integrations of their own. While U.S. lawmakers passed the GENIUS Act banning yield-bearing stablecoins, on-chain lending protocols remain legally unaddressed, fueling tension with traditional banks and opening the door for further growth in decentralized finance.

Despite a broader decline in AAVE’s price over the past month and year, the acquisition signals Aave’s strategic move toward expanding retail DeFi offerings. The deal adds a yield-generating stablecoin platform to Aave’s ecosystem, reinforcing its position in the on-chain lending space.

Analysts project that the acquisition could help Aave capture more retail user interest and increase liquidity for its platform. The timing aligns with rising institutional activity in DeFi, as seen in Coinbase’s recent acquisition of Echo and Pave Bank’s $39 million Series A funding. These moves reflect broader confidence in DeFi’s potential to evolve beyond niche institutional use.

To assess the market impact of such strategic developments, a backtesting strategy was devised using a rule-based event-driven model. The approach identifies instances where the closing price of a given asset falls by at least 10% over a 21-day period, flagging it as a potential buy opportunity. Upon detecting this event, a position is opened at the next day’s open and held for 20 trading days, simulating a mid-term investment horizon. This method allows for evaluating the return potential of strategic moves such as Aave’s acquisition.

The model assumes a fixed holding period without stop-loss or take-profit mechanisms, focusing purely on market reaction to the event. If applied to Aave, this strategy would test whether the acquisition of Stable Finance could serve as a catalyst for short-to-mid term price recovery.