BGD Labs to cease Aave contributions after four years as governance tensions grow

BGD Labs, a core technical contributor to the Aave DeFi protocol, announced it will cease its involvement with the Aave DAO after its current contract ends on April 1st, concluding nearly four years of work on development and infrastructure, including Aave v3.

The firm stated its departure reflects growing governance tensions and an organizational shift where Aave Labs, the original builder, is taking a more central role in Aave v4 development. BGD Labs cited concerns over centralization risks due to Aave Labs' control over brand and voting influence, and criticized the adversarial approach toward v3 improvements and lack of meaningful collaboration on v4 design.

Despite leaving, BGD Labs plans to ensure a smooth transition by publishing documentation and offered an optional two-month security retainer for $200,000 to handle security incidents post-departure, pending a governance vote.

(Source：The Block)