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Aave DAO Debates Where Frontend Fees Belong After CoWSwap Shift

Aave delegates question revenue flow after CoWSwap integration reroutes 15–25 basis points of swap fees away from the DAO treasury to external recipients.

  • On December 15, 2025, Aave governance members flagged a dispute over control of app.aave.com after Aave Labs integrated CoWSwap earlier this month, with delegates alleging fees now route to Aave Labs, not the DAO treasury.
  • Aave Labs says the interface is independently operated from the DAO protocol, with the DAO controlling protocol fees while Labs manages application features like swap routing and monetization.
  • Forum posts and on-chain data show frontend fees of roughly 15 to 25 basis points accruing externally, with rerouting estimated at 45 to 50 ETH weekly, about $200,000 in lost revenue.
  • Aave founder Stani Kulechov defended Labs' role, saying it funds and maintains the frontend and may monetize proprietary products, while Aave Labs pledged clearer separation of protocol economics from product decisions.
  • As Aave prepares for V4, which introduces new risk-management mechanisms, Aave Labs emphasized that alternative frontends remain permissionless and the DAO can build or fund its own interface.
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Key Points of the News The integration of CoWSwap into the Aave interface diverted swap rates from the DAO Treasury. Delegates and critics argue that front-end monetization should benefit the DAO. Aave Labs defends the separation between the protocol (controlled by the DAO) and the interface (managed by Labs). Who controls and who benefits financially from the protocol interface? It is the question that is discussed internally in Aave DAO in the…

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Paraswap's transition to CowSwap on the Aave.com interface triggered a cold war between the DAO Aave and Aave Labs. Swap charges, which went to the DAO's cash flow, are now being redirected to an address controlled by Aave Labs. Marc Zeller, founder of Aave Chan Initiative, estimates that they were "dupped" and deplores the loss of $10 million a year for the holders of the AAVE token. Aave article: who captures the value? DAO accuses Aave Labs o…

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Cointelegraph broke the news in on Sunday, December 14, 2025.
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