Aave Labs to wind down the 'Avara' brand…refocuses on its core DeFi business

Aave Labs has decided to retire the 'Avara' brand—once emblematic of its Web3 expansion strategy—and refocus on its core DeFi business.

According to The Block on the 3rd (local time), Aave Labs said it will wind down projects that sat under Avara and consolidate all products and services under the Aave Labs brand. As a result, non-lending assets such as the decentralized social media protocol Lens and the Family wallet will also be phased out.

Avara was an 'umbrella brand' introduced in 2023 as Aave pursued a strategy to expand beyond DeFi into a range of Web3 areas. It encompassed multiple projects including the Lens Protocol and the Family wallet, but the company said recent strategic shifts have reduced the need to maintain it.

In a post on X, Aave Labs said, "Going forward, all products will be operated under the Aave Labs brand," adding that it will "simplify the brand architecture, boost awareness of Aave, and focus resources on introducing DeFi to new users worldwide."

The decision also comes amid an ongoing tug-of-war over authority between Aave Labs and Aave DAO. While Aave Labs is the private company that developed the original Aave lending protocol, the protocol’s smart contracts, risk parameters and revenue model are currently managed by Aave DAO.

Previously, in December last year, debate intensified within the community over who holds de facto control of Aave after Aave Labs integrated CoW Swap into its official website and routed part of fee revenue to a private wallet rather than the DAO. A so-called "poison pill" proposal to have the DAO absorb Aave Labs’ intellectual property and brand later emerged, but it was voted down in a governance vote.

Aave Labs co-founder Stani Kulechov has recently moved to put the emphasis back on DeFi. After selling the Lens Protocol in January, he also decided to shut down the Family wallet-related business. "The Avara brand is no longer necessary," he said, adding, "We will focus on mainstreaming DeFi as one team."

Aave recently unveiled a revamped app featuring high-yield deposit products and deposit protection of up to $1 million. Aave Labs has also floated a long-term plan to scale on-chain finance to the multi-trillion-dollar level once regulatory uncertainty is resolved.

Meanwhile, reports that Kulechov recently purchased a home worth about $30 million in Notting Hill, London, are said to have drawn a sensitive reaction from parts of the community.