Aave Faces Structural Shift as BGD Labs Confirms April Exit

• BGD Labs confirms April exit from Aave DAO
• Governance tensions rise as Aave shifts toward v4
• Security retainer proposed amid transition and restructuring plans

Aave’s development structure will change on April 1 as BGD Labs prepares to conclude its service engagement with the Aave DAO. The announcement ends nearly four years of direct involvement in building and maintaining the protocol’s technical backbone.

In a forum post published Friday, BGD Labs said it informed the community early to support an orderly transition. The firm confirmed it will continue handling all responsibilities until the contract expires. These duties include work on Aave v3, Umbrella, chain expansions, asset onboarding, and security oversight. Additionally, the team plans to release documentation and maintenance guidelines to help other contributors assume control of its projects.

Since early 2022, BGD Labs has played a central role in shaping Aave’s core systems. The firm led or supported several technical subsystems that power the lending platform. It described Aave v3 as the ecosystem’s crown jewel and highlighted continuous improvements across supported networks. Moreover, BGD Labs contributed to governance infrastructure, operational standards, and safety mechanisms that underpin daily operations.

According to the firm, Aave’s core systems now operate in a solid and future ready condition. Governance infrastructure, it noted, functions reliably and can continue without significant structural revisions.

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Governance Realignment and v4 Roadmap

BGD Labs linked its departure to evolving governance dynamics within the ecosystem. Aave Labs, the startup that originally built the protocol, has moved to take a more central role in developing Aave v4 and related initiatives.

Recently, Aave Labs proposed directing 100% of protocol revenue to the DAO treasury while requesting funding for its development efforts. The restructuring plan also includes placing Aave’s intellectual property under a new foundation. Furthermore, it prioritizes the rollout of Aave v4 and suggests deprioritizing new feature work on v3.

Plans indicate a gradual wind down of v3 beginning eight to twelve months after v4 launches. Measures would encourage users to migrate to the newer version. BGD Labs described the evolving setup as an asymmetric organizational scenario and referenced Aave Labs’ influence over branding, communications channels, and voting power.

Proposed Security Retainer During Transition

Despite its exit, BGD Labs pledged support during the handover period. The firm proposed a two month optional security retainer from April through June 2026. Under this arrangement, it would remain available to respond to security incidents affecting Aave v3, governance systems, and related infrastructure. The proposed retainer would cost $200,000 and requires approval through a DAO vote.

BGD Labs’ departure marks a transition phase for Aave as development priorities shift toward v4. The firm stated it will complete its obligations and assist with continuity efforts before formally stepping away.

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