Aave's $100M Revenue Flow: A Flow Analysis of the DAO's New Cash Engine

The proposal establishes a direct 100% flow of revenue from Aave-branded products into the DAO treasury. This includes all fees from the core interface, Aave Card, Aave Pro, Aave Kit, and Aave Horizon. The move formalizes a cash engine that has previously been self-funded by Aave Labs, now making it a direct asset of the decentralized governance body.

This expansion significantly broadens the DAO's revenue base beyond the protocol fees collected since AIP-1. It explicitly positions the AAVE token as the central point of value accrual within a token-centric model, aligning the financial incentives of the product layer with the token's holders. The proposal also includes a swap integration on aave.com, which currently generates approximately $10 million in annualized revenue, further boosting the treasury's inflow.

The immediate effect is a material increase in the DAO's treasury capacity. This expanded war chest is intended to fund strategic growth, development, and buybacks, providing the financial runway needed to execute the protocol's next phase.

Quantifying the Revenue Impact

The proposal's scale is defined by the underlying cash flow. Aave V3 alone generates over $100 million in annualized protocol revenue. This new framework aims to capture that entire flow, plus a significant expansion into new revenue streams. The plan broadens the total addressable revenue to include non-protocol and off-chain operations, such as the Aave Card, Aave Pro, and the existing swap integration on aave.com, which currently contributes approximately $10 million in annualized revenue.

This creates a powerful new cash engine for the DAO treasury. By directing 100% of Aave-branded product revenue-encompassing the core interface, mobile app, enterprise solutions, and institutional services-the proposal formalizes a direct financial link between the product layer and the token holders. This alignment is critical for funding the protocol's next phase of growth and development.

Yet, the solution to protect the Aave brand is the essential precondition for monetizing this new flow. The proposal itself acknowledges this by including a commitment to establish a foundation to hold the brand and IP. Without a clear, protected brand identity, the value of these new revenue streams-especially for consumer-facing products like the Aave Card-could be diluted or contested, undermining the entire financial model.

Catalysts, Risks, and What to Watch

The primary catalyst is the upcoming DAO governance vote on the 'Aave Will Win' framework. This vote will determine whether the proposed 100% revenue flow to the treasury and the V4 technical foundation are ratified. The market has already reacted, with the AAVE token gaining about 2% on the news even as the broader crypto market sold off.

Key risks remain unresolved. Disagreements persist over the boundaries of funding, the future of the Aave brand, and the distribution of governance power. The proposal includes a $25 million allocation to Aave Labs for development and a plan to create a foundation for brand defense, but these are not yet settled. The core dispute, which erupted in December over revenue ownership and brand control, has not been fully extinguished.

The key metric to watch is AAVE token price action and trading volume. The token is currently trading at $111.11 with a 24-hour volume of over $422 million. Any significant movement in price or volume around the governance vote will signal market conviction or skepticism toward the new financial model.