AAVE announced a $50 million/year Token buyback plan. Photo: DeFiant
New impetus for AAVE
- The AAVE community has just announced a $50 million/year Token buyback proposal . This move is not only to stabilize the Token value but also to bring the project closer to its vision of a self-operating, sustainable, and real-revenue DeFi protocol.
- The new proposal, initiated by the AAVE Chan Initiative (ACI), a development group led by Marc Zeller, aims to make the Token buyback program a permanent, permanent part of AAVE governance mechanism.
- Specifically, the program will be fully funded by protocol revenue, with AAVE Finance Committee (AFC) and TokenLogic responsible for implementing buybacks worth between $250,000 and $1.75 million per week, depending on market conditions and actual revenue.
- The proposal also allows AFC to leverage BTC and ETH reserves to fund future growth initiatives, such as issuing collateralized debt or converting assets to yield-generating assets.
- With an estimated annual revenue of more than $100 million, allocating $50 million/year to the buyback program is a bold but feasible decision.
- However, AAVE is not the only protocol to initiate this mechanism. Many other projects such as pump.fun or Raydium are also applying the Token buyback model, affirming that buyback is becoming the "new standard" to help DeFi effectively restructure Capital and attract value for Token holders.
AAVE Expands Power
- At the same time, AAVE continues to demonstrate its leading position in the decentralized lending segment:
Exceeded the $25 billion mark in total outstanding loans;
TVL reached approximately 36.5 billion USD ;
Launched Horizon , a Tokenize real-asset (RWA) collateralized stablecoin lending platform for institutions;
And in particular, deploying the first version beyond the EVM on the Aptos network, expanding the technological scope of the protocol.
- AAVE is also integrating yield-generating assets from Maple Finance as new collateral, contributing to diversifying its revenue streams. According to data from DefiLIama, AAVE currently ranks second in the entire DeFi industry in monthly revenue, behind only Uniswap.
- AAVE price increased by more than 2% to above $220 following today's news, reversing after a sharp decline in the previous session.
AAVE price movement in the last 24 hours, screenshot on CoinGecko at 10:20 AM on October 23, 2025
AAVE's TVL. Photo: defillama taken on October 23, 2025
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