AAVE +0.06% Amid ETHLend 2026 Relaunch and Native Bitcoin Integration

Aave founder Stani Kulechov has confirmed the 2026 relaunch of ETHLend, the protocol that evolved into Aave in 2018. This announcement has reignited interest in the protocol’s origins and its potential future role within the broader Aave ecosystem. According to Kulechov’s recent statement, the new ETHLend will leverage native Bitcoin as collateral, a notable departure from the synthetic or wrapped assets commonly used in DeFi.

The original ETHLend, launched in 2017, operated on a peer-to-peer lending model that matched individual lenders and borrowers directly via smart contracts. While innovative at the time, the model faced scalability and liquidity challenges, prompting the team to rebrand to Aave and pivot to the liquidity pool model in 2018. This shift proved instrumental in Aave’s rise to become one of the most influential DeFi platforms, with its AAVE token now central to governance and ecosystem growth.

The 2026 relaunch is expected to reintroduce a peer-to-peer structure, but with modern enhancements. Kulechov’s comments suggest that the new ETHLend will utilize a more efficient P2P engine, potentially complementing Aave’s existing infrastructure. The integration of real Bitcoin — as opposed to wrapped variants — marks a significant step in bringing native crypto assets into DeFi ecosystems. This aligns with Aave’s ongoing efforts to deepen Bitcoin’s utility on-chain, a strategy that could attract both retail and institutional participants.

While Kulechov has not disclosed technical details about ETHLend 2.0, the community is speculating on the potential for improved MEV (Maximal Extractable Value) protection, faster execution times, and better scalability. These improvements could address gaps not fully covered by Aave’s liquidity pools, especially for users seeking more predictable counterparty relationships. The relaunch appears to be part of a broader strategy to expand Aave’s product offerings and reengage early adopters.

The announcement has stirred a wave of nostalgia among long-time users who recall the early ETHLend interface. Screenshots from 2018 have resurfaced on social media, underscoring the emotional connection many in the DeFi space have to the project’s history. Additionally, some are speculating on the potential revival of the LEND token, though no official plans have been announced.

With real Bitcoin experiments already underway, the Aave team seems poised to push the boundaries of decentralized lending. The 2026 relaunch is expected to provide a fresh narrative for the protocol as it enters a new phase of development, building on its foundational roots while embracing the next generation of DeFi innovation.