Leading Aave Code Contributor 'Rage Quits' DAO, Cites Centralization Concerns
BDG Labs – an Aave DAO code contribution group launched in 2022 by former Aave CTO Ernesto Boado that was instrumental in the development of Aave V3 – has announced it will cease all contributions to Aave when its current contract expires with the DAO on April 1, 2026.
What's the Scoop?
- Centralization Concerns: BDG Labs is declining to renew its service contract with Aave DAO, which expires on April 1. In explaining its decision, BDG blamed centralization concerns, noting Aave Labs' absolute control over the Aave brand name, immense influence in protocol governance, and adversarial attitude toward Aave V3 (which Labs is seeking to replace with a V4 that it alone developed without outside collaboration).
- Planned Wind Down: According to an Aave governance forum post, BDG Labs will continue working on all ongoing projects and work to ensure that documentation is sufficient for other groups to continue the work. BDG also proposed a two-month, $200k security retainer, under which it respond to security incidents affecting Aave v3, governance systems, and related infrastructure issues until June 1, 2026.
- Labs' Response: In a response posted to X, Aave Labs founder Stani Kulechov thanked BGD for its four years of technical leadership on Aave V3. While he dismissed any risk of protocol or operations disruptions, Stani expressed support for BDG's proposed $200k security retainer.
BGD Labs are rage quitting Aave DAO after 4 years.
— Ignas | DeFi (@DefiIgnas) February 20, 2026
They built Aave v3, governance infra, Umbrella, and most core systems.
Why they're leaving:
- Aave Labs pivoted from independent company to central contributor pushing v4
- Aave Labs controls the brand, comms, and has voting… pic.twitter.com/MqRR105eEK