Aave governance dispute continues for three months, TVL drops from $36 billion to $26.5 billion

PANews reported on March 1 that, according to on-chain analyst Yujin's monitoring, the governance dispute between Aave's development team and its community has lasted for three months since early December. During this period, Aave's TVL has dropped from $36 billion to the current $26.5 billion (according to defillama data). This decline is due both to the depreciation of major deposit/collateral assets such as WBTC and ETH, and to whales reallocating their funds to other lending platforms as a result of the governance controversy.

The largest whale to reallocate is Justin Sun. During this period, he withdrew $910 million in stablecoins from Aave and redeposited them into Sky and its sub-DAO Spark. Since early December, his deposits in Sky and Spark have increased from $570 million to $1.48 billion.