Aave News Today: DeFi Embraces Corporate Capital Strategies to Stabilize Token Markets

Ether.fi DAO has proposed a $50 million token buyback program for its ETHFI asset, a move that aligns with a broader surge in decentralized finance (DeFi) protocols adopting corporate-style capital management strategies. The initiative, unveiled in a governance proposal on October 31, would activate immediately upon community approval and continue until $50 million is spent, the Ether.fi Foundation terminates the program, or a subsequent vote alters the plan. The buyback would occur when ETHFI trades below $3, a price level that currently applies, as the token has fallen over 89% from its 2024 peak to approximately $0.93, as reported by The Block.

The proposal ties the buyback trigger directly to price thresholds rather than fixed timelines or budgets, a departure from traditional corporate practices. Ether.fi's strategy emphasizes reinvesting surplus revenue to bolster market confidence and reduce circulating supply, with the foundation stating it intends to "progressively expand buy-back capacity in proportion to protocol revenues," The Block reported. This approach mirrors a growing trend in DeFi, where protocols with strong fee income but weak secondary-market demand are leveraging buybacks to stabilize prices and enhance liquidity. According to CoinGecko, DeFi token repurchases have exceeded $1.4 billion in 2025, with Ether.fi's move joining initiatives from Aave, Uniswap, and Hyperliquid, The Block added.

Ether.fi's proposal is its third buyback effort, following prior liquidity-support measures under Proposals 8 and 10. The foundation plans to transparently record all transactions onchain via its Dune Analytics dashboard, ensuring visibility for stakeholders, The Block reported. The protocol, which operates as a non-custodial Ethereum-based liquid staking platform, holds $10 billion in total value locked and generates roughly $360 million in annualized fees, The Block noted.

The buyback trend has gained momentum as DeFi revenues rebound. Earlier this quarter, Uniswap and Aave helped push onchain protocol revenues back above $600 million, providing funds for new buyback cycles, The Block reported. Aave DAO recently announced a $50 million annual buyback program, while NFT marketplace OpenSea allocated 50% of its revenue to future buybacks for its SEA token. Even politically connected projects like World Liberty Financial have adopted buyback-and-burn models to retire governance tokens, The Block observed.

Ether.fi's proposal follows a four-day Snapshot vote, with approval expected to activate the program swiftly. Technical analysts note ETHFI is nearing an oversold zone, and a break above $1.05 could signal a path toward $1.26, aligning with key resistance levels, according to Investor Empires. Critics, however, caution that sustained success depends on consistent revenue growth and market trust in the program's execution.

The move underscores DeFi's shift toward "protocol-as-business" models, where revenue is reinvested to strengthen tokenholder value. As projects like Ether.fi, Aave, and Pump.fun lead this trend, the sector appears to be embracing corporate finance principles to stabilize volatile markets and align incentives between protocols and investors, The Block reported.