BGD Labs to Cease Involvement with Aave DAO After Contract Ends

BGD Labs, a key technical contributor to the Aave protocol, has announced its decision to cease involvement with the Aave DAO following the conclusion of its current service contract on April 1. According to Foresight News, this marks the end of nearly four years of development and infrastructure work on the lending platform. BGD Labs stated that it is informing the community in advance to ensure a smooth transition. Until the contract expires, the team will continue to fulfill its existing responsibilities, which include work on Aave v3, Umbrella, chain expansion, asset onboarding, and security. Additionally, BGD Labs plans to release documentation and maintenance guides to assist other contributors in taking over its projects. The decision to exit reflects broader changes within the Aave organization and governance environment. This shift is particularly evident as Aave Labs, the startup that initially built the protocol, moves to play a more central role in developing Aave v4 and other initiatives. Recently, Aave Labs proposed directing 100% of protocol revenue directly into the DAO treasury while seeking funding to support its development efforts.