BGD Labs, one of the main technical contributors to the decentralized finance (DeFi) protocol Aave, announced that it will end its collaboration with 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 contract expires on April 1.
In a statement released at the forum today, BGD Labs said it informed the community in advance to ensure a smooth transition process. The company will continue its existing responsibilities throughout the contract term, including Aave v3, Umbrella, channel extensions, new asset integration and security work. It also plans to publish comprehensive documentation and maintenance guides to facilitate the resumption 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 “jewel” of the ecosystem, saying it has been a pioneer in its continued improvement and expansion.
BGD Labs also said it played an active role in establishing the protocol’s governance infrastructure, developing operational procedures, and implementing security mechanisms. According to the company, Aave’s core systems now have a “highly robust and scalable” structure; The management infrastructure can operate for a long time without major changes.
BGD Labs’ decision to leave is reportedly driven by organizational and governance changes within the Aave ecosystem. A key part of this process is preparing Aave Labs to play a more central role in the development of Aave v4.
Aave Labs recently proposed that 100% of the protocol’s revenue be directed to the DAO treasury while simultaneously requesting funding for development activities. BGD Labs, however, argued that this process creates an “asymmetric organizational scenario.” According to the company, Aave Labs’ influence on branding, communication channels and voting power poses risks to the principle of decentralization.
The company also described Aave v3’s development approach as “contested”, saying that a meaningful collaborative environment did not emerge during the v4 design process and that contributors were only asked to provide advice without being encouraged or involved in the design process.
*This does not constitute investment advice.