The launch of Aave v4 is not what it seems.
It's the direct result of breaking down everything that was good about Aave.
Let me expose why this is the case.
24h since AAVE v4 launched generated only 4M in deposits.
This is a protocol with over 30 bil in TVL on Ethereum alone. That sits on v3, the one people actually trust and was built by the DAO.
If you visit the main page of AAVE today, you'll be presented with:
Aave App - an Aave Labs product
Aave v4 - an Aave Labs product
There was no actual demand for these products, except that they were created to generate income for Aave Labs.
Since that went against the DAO interests, the founder and owner of Aave Labs did a hostile takeover by outvoting the other DAO members that protested against these initiatives.
He then proceeded to pay himself via a rigged vote 50M in DAO funds to develop a roadmap including the above products.
Initially, they wanted to play the DAO game, but since they couldn't get their way, they went ahead and broke the DAO.
Now, Aave Labs tells users that every product they are building and 100% of its associated revenue will go to the DAO treasury.
That's great, until you realize they control the DAO and can always vote to pay themselves whatever amounts they want.
So instead of their products paying Aave Labs directly like they wanted initially, they now use a broken DAO as a cover to pay themselves whenever they want.
Unsuspecting users believe everything Aave Labs is building is in the benefit of the DAO and the AAVE token, when in fact that's a smokescreen to syphon money quietly.
This conflict of interest caused the recent Aave drama that saw key DAO service providers quit and leave. The ones that actually built and maintained v3 at over 30 bil in TVL.
Aave Labs changed the Aave website, which they control, to benefit themselves, created the conflict (perhaps on purpose) so they can take over the DAO and do as they please.
They succeeded.
This is why we have v4 today. The ones against it were pushed out.
If you scroll the Aave website you'll notice v3 gets no attention, besides some links. Moreso, they present v4 as the "pro" version. That's totally misleading.
v3 is the actual product that was tested and held strong during times of stress, not v4 which is an untested product from a team that showed gross negligence in the past.
For example, a user recently lost 50M using the Aave Labs swap function on their website. Imagine trying to buy a lot of AAVE on their own site and losing all your money.
That's who is behind v4.
The founder also bought a 30M mansion in one of the fanciest neighborhoods in London most recently.
Aave Labs was thirsty for money and this was their solution. It worked.
However, people will vote with their money.
Time will tell how v4 will do, but I would never touch any product developed by Aave Labs, unless you want to risk your money.
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@duonine