Aave DAO has overwhelmingly approved a proposal to deploy a centralized version of its acclaimed Aave V3 lending protocol to Kraken’s compliant Layer 2 blockchain, Ink. With 99.8% of votes in favor in the off chain request for comment stage, the initiative will now transition to a full on chain governance vote.
Under the proposal, the Ink Foundation backed by Kraken will operate a whitelabel Aave platform, leveraging the open source code under license. This centralized deployment is anticipated to target institutional clients seeking DeFi yield within a regulated framework while allowing Aave DAO to earn a revenue share, strengthening its treasury.
Kraken’s Ink network is positioned as a compliance ready chain, tailored for regulated asset issuance and structured finance, making it a fitting host for institutional grade protocols. Aave’s participation reflects the expanding marriage between traditional DeFi innovation and centralized infrastructure, particularly appealing to hedge funds, insurers, and fintech operators.
Next steps involve drafting an Aave Improvement Proposal for DAO voting on specifics, including revenue sharing, governance oversight, and operational controls. If approved, Ink based Aave could serve as a template: decentralized code, centralized operations a hybrid meant to drive scale and trust.
This marks a notable pivot in Aave’s model, acknowledging regulatory realities and redefining how DeFi engages with institutional audiences.
