Marc Zeller, founder of the Aave Chan Initiative (ACI), released an audit ahead of Aave Labs’ $51 million funding round vote, heightening governance controversy. The report notes that Aave Labs has raised roughly $86 million across ICO, venture capital, and DAO payments, but remains opaque in financial disclosures and wallet transparency. It alleges that Horizon, Aave Labs’ RWA marketplace, inflated data through incentives, with a revenue-to-spending ratio of about 24:1. These disclosures are intended to prompt token holders to reassess Aave Labs’ ROI and accountability mechanisms prior to the snapshot vote.
Additionally, the audit criticizes Aave Labs for transferring roughly $5.5 million in swap fees generated on the aave.com frontend to a company-controlled address without DAO approval. The report also notes that such transfers underscore governance concerns and the need for clearer checks on expenditures.
Earlier reporting indicated that Aave Labs’ new proposal would transfer 100% of protocol revenue to the DAO in exchange for operating funds. The emergence of these concerns comes as governance processes and the integrity of funding decisions face heightened scrutiny ahead of key votes.
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