BGD Labs, a key technical contributor to the decentralized finance (DeFi) protocol Aave, has announced that it will end its partnership with the Aave DAO after approximately four years of development and infrastructure work.
The company will cease its active role in the project when the current service agreement expires on April 1.
In a statement released at the forum today, BGD Labs stated that it had informed the community in advance to ensure a smooth transition process. The company will continue its existing responsibilities throughout the contract period, including Aave v3, Umbrella, chain extensions, new asset integration and security work. It also plans to release extensive documentation and maintenance guides to facilitate the takeover of its projects.
Founded in early 2022, BGD Labs has played a central role in building and maintaining Aave’s core infrastructure. The company specifically describes Aave v3 as the “crown jewel” of the ecosystem and states that it has been a pioneer in its continuous improvement and expansion.
BGD Labs also stated that it played an active role in setting up the protocol’s governance infrastructure, developing operational procedures and establishing security mechanisms. According to the company, Aave’s core systems now have a “very robust and future-proof” structure; the management infrastructure can function for a long time without major changes.
BGD Labs’ decision to leave is reportedly driven by organizational and governance changes within the Aave ecosystem. An important part of this process is preparing Aave Labs to take a more central role in the development of Aave v4.
Aave Labs recently proposed sending 100% of protocol revenues to the DAO treasury while simultaneously applying for funding for development activities. However, BGD Labs argued that this process creates an “asymmetric organizational scenario.” According to the company, Aave Labs’ influence on branding, communication channels and voting rights poses risks to the principle of decentralization.
The company also described the approach to developing Aave v3 as “controversial”, stating that a meaningful collaborative environment was not created during the v4 design process, and contributors were only invited to provide advice without being encouraged or involved in the design process.
*This is not investment advice.