Aave making money moves - new AAVEnomics part I is here - $AAVE buyback and distribute starting immediately with $1M/week for the first 6 months - the original temp check was approved in Aug 2025 - protocol's cash reserves is sitting at $115M More details below 👇

1/ $AAVE has been performing well despite the market condition • Aave’s market share has grown every quarter for 2 years • $GHO supply crossed $200M • Aave DAO cash reserves +115% since temp check • Largest DAO budget in history

2/ Why now? Timing. $AAVE float is much more mature, so there's less downside pressure from incentives + Aave has deep cash reserves.

3/ Aave introduces Umbrella, a self-protection mechanism that covers bad debt up to billions. Umbrella locks liquidity in the protocol until cooldown maturity. This aims to create: ✅ Stronger liquidity security ✅ Resistance to bank run scenarios ✅ Opportunities for new revenue via cross-chain financing & restaking

7/ New Aave Finance Committee (AFC) To ensure effective capital allocation, a dedicated Aave Finance Committee (AFC) will be created to: 🔹 Manage Aave collector contract holdings 🔹 Define liquidity targets 🔹 Optimize secondary liquidity

8/ Who’s in the AFC? • Chaos Labs • Tokenlogic • Llamarisk • ACI A 3/4 signature threshold ensures governance security, with risk service providers overseeing for transparency.

9/ Key Revenue Drivers in 2025 🔹 Chainlink-powered SVR: Generates revenue while protecting users from bad debt (~$10M+ expected annually) 🔹 Umbrella: Not just protection, but enables new liquidity strategies 🔹 Buy & Distribute Program: Sustainable AAVE buybacks

10/ AAVE Buyback & Distribute Program The AFC will execute $1M/week AAVE buybacks for 6 months, gradually shifting to a fully self-sustaining buyback model using treasury revenue.

11/ 🔄 LEND Migration Ends After 5 years, it’s time to close the chapter on LEND. 320K AAVE (~$65M) will be redirected to the Ecosystem Reserve, making it available for growth, safety, or burns.

12/ Anti-GHO: The Next Evolution Instead of a simple GHO discount, Aave stakers will now generate Anti-GHO—a non-transferable token that can: ✅ Burn 1:1 to reduce GHO debt ✅ Convert into StkGHO for rewards ✅ Scale sustainably with protocol growth

13/ Protocol Revenue Redistribution 50% of GHO protocol revenue will now be redirected to StkAAVE & StkBPT holders via Anti-GHO. Estimated 6M Anti-GHO/year based on current GHO revenue.

14/ New Liquidity Incentives Strategy The outdated StkBPT staking model is being restructured to combine: • A more efficient staking model • Tighter budget control • Direct AAVE buybacks for liquidity incentives

15/ Umbrella & Rewards Activation Across Networks The new Aavenomics framework will roll out across: 🔹 Ethereum 🔹 Avalanche 🔹 Arbitrum 🔹 Gnosis 🔹 Base 🔹 Sonic

16/ TLDR; $AAVE is doing buy-and-distribute because it's a mature token with strong cash flow and a high free float, positioning it well to lead by example as the industry shifts towards accruing value back to tokenholders.

17/ 🗳 What’s next? • Community feedback • Snapshot vote • Implementation via AIP