TLDR
- Aave Labs discontinues the Avara brand and Family wallet to focus on DeFi growth.
- Tensions with Aave DAO played a role in Aave Labs’ refocus on DeFi services.
- Aave Labs plans to concentrate on its lending protocol and related products.
- Aave’s transition signals a renewed emphasis on expanding DeFi offerings worldwide.
Aave Labs, the company behind the Aave lending protocol, has announced that it is sunsetting its Avara “umbrella brand” and winding down its Family wallet project. The company aims to streamline its operations and refocus on its core decentralized finance (DeFi) services. This decision comes after Aave Labs’ growing tensions with the Aave DAO, raising questions about control over the Aave protocol.
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Aave Gradually Shuts Down Family iOS Wallet, Strategically Returning to Core DeFi BusinessOn February 4th, Aave founder Stani.eth announced the gradual shutdown of the Family iOS wallet, though it will continue to support the Aave App as infrastructure.… pic.twitter.com/LghTTOJGXD
— CryptoPulse (@CryptoPulseGLBL) February 4, 2026
The Avara brand, which once represented a range of Web3 projects, including the decentralized social media protocol Lens and the Family wallet, will be fully discontinued. Aave Labs confirmed that future products, such as the Aave mobile app, Aave Pro, and Aave Kit, will operate directly under the Aave Labs name. The company stated that this change would help simplify its branding and concentrate its efforts on expanding the Aave protocol.
Refocusing on Core DeFi Services
Aave Labs is prioritizing its commitment to the Aave lending protocol, a leading platform for on-chain credit on Ethereum. According to Aave Labs, the decision to wind down the Avara brand reflects a shift back to its DeFi roots.
The company’s initial vision for Avara included exploring new Web3 verticals outside of DeFi, but now it appears the focus will be solely on enhancing its lending products and services.
Stani Kulechov, co-founder of Aave, explained that the company is focusing on “bringing Aave to the masses,” aiming to introduce decentralized finance to millions of users globally. As part of this transition, Aave Labs will no longer need the Avara brand and will focus its resources on building the Aave brand instead. The move follows the sale of the Lens protocol and a plan to phase out the Family wallet project.
Tensions Between Aave Labs and Aave DAO
The decision to shut down the Avara brand also comes amid ongoing tensions between Aave Labs and the Aave DAO. The Aave DAO governs the Aave protocol’s smart contracts, risk parameters, and revenue, while Aave Labs manages the off-chain elements, such as the official website, social media, and branding.
Aave Labs has faced criticism within the community over its decision to integrate CoW Swap into Aave’s interface, which redirected swap fees that previously funded the Aave DAO treasury to a private wallet controlled by Aave Labs.
These actions raised concerns about the true ownership of the Aave protocol. While Aave Labs holds control over key assets like branding and IP, the Aave DAO has governance over the protocol’s technical aspects. In response to these concerns, Kulechov proposed sharing non-protocol-related revenue with AAVE token holders and suggested revisiting the IP and branding issue.
Future Plans for Aave Labs
Despite the shifts in strategy and brand direction, Aave Labs remains committed to expanding its DeFi offerings. In recent months, the company introduced an upgraded Aave App, which includes high-yield savings options, offering interest rates as high as 9%. Additionally, the app provides “insurance-backed protection” for deposits up to $1 million.
Kulechov also outlined Aave’s long-term plans to scale its operations, targeting trillions of dollars in on-chain financial activity once regulatory challenges in the U.S. are resolved. This renewed focus on DeFi comes at a time when the decentralized finance sector continues to grow, with Aave aiming to maintain its dominance in the market.
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