Aave, a leading decentralized lending protocol, has launched a major initiative to buy back $1 million worth of AAVE tokens every week. This move is designed to reward stakers and increase demand for the token.
🔁 Aave Starts $1M Weekly Buybacks
In a bold new step, Aave confirmed it will repurchase $1 million in AAVE tokens weekly for the next six months. Over a year, this could total more than $50 million in buybacks.
These repurchased tokens will be distributed directly to AAVE stakers, offering real yield to long-term holders. The program is part of a broader “fee switch” mechanism that redirects a portion of the protocol’s revenue to reward the community.
💡 What’s Driving the Buybacks?
This buyback initiative comes with a long-term vision. Aave plans to increase the size of weekly buybacks as protocol revenue grows. Starting in 2025, income is expected to rise through several key developments:
- 📈 Partnership with Chainlink: Aave can earn up to $10M in revenue from MEV during liquidations using Smart Vault Revenue.
- 💵 Growth of GHO: Aave’s stablecoin is on track to become profitable next year.
- 🏦 Launch of Horizon: A new push into Real-World Assets (RWAs) will diversify income streams.
These updates are part of a larger expansion strategy that includes the rollout of Aave V4 and deeper integration with Chainlink.
📊 How This Impacts AAVE Price
The community is responding positively to the buyback news. AAVE is trading at $139.18, up 2% in 24 hours. Whale activity earlier this month saw over 41,000 AAVE deposited to CEXs, which pressured the price—but this new buyback plan could reverse that.
Buybacks naturally reduce the available supply, which adds upward pressure on price. Since these tokens are going to stakers, it also increases the incentive to hold rather than sell, promoting long-term token retention.
🔐 Aave’s Protocol Strength and Future Outlook
In February, Aave handled $210 million in liquidations without incurring bad debt—a major success for a DeFi platform during volatile conditions. This track record, combined with the new initiatives, highlights Aave’s maturity and innovation in the DeFi space.
Founder Stani Kulechov emphasized that this buyback strategy is just one part of Aave’s evolving vision for 2025. With key upgrades and new revenue streams on the horizon, Aave is positioning itself as a dominant force in decentralized finance.
