AAVE +1.9% as Founder Announces 2026 ETHLend Relaunch with Native Bitcoin Support

Aave founder Stani Kulechov has confirmed the 2026 relaunch of ETHLend, the protocol that evolved into the modern Aave platform in 2018. The announcement, made via X, details a return to the original peer-to-peer model with updated infrastructure and a focus on native Bitcoin (BTC) collateral—unlike wrapped BTC commonly used in DeFi today. The relaunch has generated significant interest within the decentralized finance (DeFi) community, particularly among early adopters familiar with ETHLend’s 2017 origins.

From ETHLend to Aave and Back Again

ETHLend originally launched in 2017 as one of the first peer-to-peer lending platforms on Ethereum, connecting lenders and borrowers through smart contracts. However, the model struggled with liquidity and matching efficiency, prompting the team to pivot to a pooled liquidity structure under the Aave name by late 2018. The rebrand brought greater scalability and automation, becoming a foundational pillar of the DeFi ecosystem.

Kulechov’s latest announcement suggests ETHLend 2.0 will not replace Aave but rather serve as a complementary product, potentially leveraging modern infrastructure to improve upon the limitations of the original P2P model. The new iteration is expected to include updated execution mechanisms, enhanced MEV protection, and faster on-chain operations—key upgrades that could differentiate it from both the current Aave model and competing DeFi platforms.

Native Bitcoin Collateral Marks a Strategic Shift

A key point of the announcement is the use of real Bitcoin—non-wrapped—as collateral. Most DeFi protocols today rely on synthetic or wrapped versions of BTC, which require intermediaries or tokenization processes. The use of native BTC could streamline cross-chain interactions and broaden DeFi’s appeal to Bitcoin holders who have been hesitant to enter the ecosystem.

Kulechov noted in his X post that experiments with native BTC collateral are already underway, suggesting that the Aave ecosystem is actively exploring ways to integrate Bitcoin more directly into DeFi services. While technical specifics remain undisclosed, the move aligns with broader industry trends toward multi-chain interoperability and the inclusion of Bitcoin in on-chain financial applications.

Community Reactions and Market Implications

The DeFi community has responded with a mix of nostalgia and curiosity, with many users revisiting old ETHLend user interfaces and discussions. Some speculate that the relaunch could revive the utility of the original LEND token, though Kulechov has not confirmed any such use cases. The announcement also introduces a new narrative for Aave—highlighting its ability to evolve and return to foundational elements of its history with a modern twist.

While the token price has seen a modest 1.9% gain in the past 24 hours, it is worth noting that the broader AAVE token has fallen by 7.9% in the last seven days and 28.1% over the past month. These figures indicate that the market is still processing the announcement, and it remains to be seen whether the long-term vision for ETHLend will translate into sustained price appreciation.

Looking Ahead

The 2026 timeline provides ample time for development and testing. The DeFi space has seen rapid innovation over the past decade, and the return of ETHLend—if executed successfully—could position Aave as a leader in bridging traditional P2P finance with next-generation DeFi infrastructure. As the community awaits further details, the key focus will remain on how the new ETHLend platform integrates with the broader Aave ecosystem and whether it can deliver the efficiency and liquidity that characterized its modern counterpart.