Decentralized finance protocol Aave has surpassed US$1 trillion in cumulative lending volume, becoming the first DeFi platform to reach the milestone. The figure reflects total lifetime borrowing across its markets. It signals sustained demand for onchain credit and repeated capital deployment. The achievement also places Aave at the forefront of decentralized lending by scale and activity.
Aave Labs founder and CEO Stani Kulechov announced the milestone on X, stating that a decade ago, neither DeFi nor Aave existed. Today, he described Aave as the backbone of onchain lending. The protocol currently secures more than US$27 billion in total value locked.
Launched in 2017 as ETHLend, the project rebranded to Aave in 2018. Since then, it has grown into the largest liquidity hub in decentralized lending.
Aave allows users to deposit digital assets and earn yield. It also lets borrowers access liquidity by posting crypto collateral. The system removes intermediaries and operates through smart contracts.
Over time, activity expanded across multiple markets. As a result, cumulative borrowing volume now exceeds US$1 trillion. This metric measures total loans issued since launch. It does not represent outstanding debt.
Still, the figure shows repeated usage across cycles. Meanwhile, total value locked stands above US$26.9 billion, placing Aave ahead of competitive platforms.
Competitors such as Morpho, JustLend, SparkLend, Maple, Kamin Lend, and Compound Finance each hold more than US$1 billion in TVL. Yet, Aave maintains a clear lead in scale.
Revenue data clearly reflects this gap. Over the past 30 days, Aave generated more than US$83 million in protocol fees. That total equals roughly four times the fees recorded by Morpho during the same period.
As growth continues, Aave Labs has moved to attract institutional capital. In August 2025, the team launched Aave Horizon on Ethereum. The market targets traditional financial firms and large investors.
Horizon allows institutions to borrow stablecoins against tokenized real-world assets. Early participants included VanEck, WisdomTree, and Securitize. The initiative marks a direct bridge between DeFi infrastructure and regulated finance.
Kulechov has outlined a broader strategy around tokenizing abundance assets. He has cited sectors such as solar infrastructure, battery storage systems, and robotics. In February, he suggested these industries could represent a US$50 trillion opportunity by 2050.
The team aims to position Aave as a primary liquidity source for banks and fintech companies. If decentralized credit supports real-world assets at scale, how far can on-chain lending extend into traditional finance?
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The internal disagreements that developed at Aave emerged while the organization expanded its operations. Aave Labs has requested that its DAO allocate US$42.5 million in stablecoins and 75,000 AAVE tokens to developers. The proposal has sparked discussions over revenue distribution and governance control.
The development ecosystem has experienced simultaneous structural changes. BGD Labs will stop its partnership with Aave starting from April 2026. The firm cited radical changes in the DAO structure. The protocol has reached its highest achievement at this moment. Aave maintains its position as the top decentralized lending platform, controlling the most locked and cumulative volume in total value.
Aave has become the first DeFi platform to surpass US$1 trillion in cumulative lending volume, reinforcing its lead in on-chain credit. The protocol also continues to expand through Aave Horizon and deeper institutional access, even as governance debates and developer changes draw fresh attention.