In a major strategic pivot, decentralized finance (DeFi) lending leader Aave has announced the shutdown of its integrated Web3 umbrella brand, Avara, and the winding down of its Family crypto wallet. The decision, first reported in March 2025 and confirmed by Aave founder and CEO Stani Kulechov, signals a sharp refocus on the protocol's core lending and borrowing business.
Aave Companies, the entity behind the Aave Protocol, is sunsetting Avara to divest intellectual property unrelated to lending. Kulechov stated on X that Avara "is no longer required as we go all in on bringing Aave to the masses." This move consolidates all current and future products—including the Aave App, Aave Pro, and Aave Kit—under the Aave Labs banner to simplify branding.
The Family wallet, an Apple iOS-based crypto wallet, is also being phased out. Kulechov explained that the team learned onboarding millions requires "purpose-built experiences, such as savings, rather than generic, open-ended wallet experiences." No new users will be onboarded from April 1, 2026, with existing users able to access the app until April 1, 2027, while retaining full access to their funds via Aave's website.
This strategic realignment follows Aave's recent handover of the Lens social media protocol to the Mask Network, reducing its role to an advisory capacity. The goal is to reallocate all talent and capital to accelerate development on the Aave Protocol, including the upcoming V4 upgrade with new architecture for isolated markets. Industry analysts view this as part of a broader DeFi trend towards sustainability and focus over expansion, especially amid regulatory scrutiny and intense competition in lending niches.
Aave remains the largest DeFi protocol with nearly $30 billion in total value locked (TVL), significantly ahead of competitors. The AAVE token showed minimal immediate price reaction, trading around $127.40 at the time of the announcement.
