Aave Launches $1M Weekly Token Buyback to Boost Staking Rewards and Fuel DeFi Growth

Getting your Trinity Audio player ready...

Aave, the prominent decentralized lending protocol, has ignited excitement across the crypto community by launching a major token buyback initiative. As part of a broader expansion strategy, the protocol will now repurchase $1 million worth of AAVE tokens each week—an effort expected to exceed $50 million annually.

AAVE Buybacks have officially started || @aave

For months we have been highlighting Aave’s fee switch as one of the most significant catalysts.

Last week, the project officially started to buy back $AAVE tokens, which will then be redistributed to $AAVE stakers.

▫️Program… pic.twitter.com/1sYB98TcPK

— GLC (@GLC_Research) April 18, 2025

The repurchased tokens will be redistributed to AAVE stakers, offering direct rewards from the protocol’s revenue stream. This move, powered by Aave’s newly activated “fee switch” mechanism, marks a significant shift in how the platform allocates earnings.

The buyback program is already being hailed as one of the most impactful developments in Aave’s history. According to project updates, the initiative will scale up over time, with buybacks increasing as the protocol’s revenue grows. Aave’s leadership expects a revenue boost starting in 2025 from several key drivers.

Among them is a new partnership with Chainlink to leverage Smart Vault Revenue (SVR), a move that could secure up to $10 million from MEV (Miner Extractable Value) liquidations. Additionally, Aave’s stablecoin GHO is on track to become self-sustaining, while the upcoming Horizon platform aims to tap into the Real-World Asset (RWA) market.

Stani Kulechov, Aave’s founder, framed the buyback as a cornerstone of Aave’s 2025 vision. He emphasized its integration with Aave V4, the Chainlink partnership, RWAs, and GHO growth.

Also Read: Whale Sell-Offs Shake AAVE—Is a Price Drop to $128 Inevitable?

On the market front, AAVE has shown modest gains since the announcement, trading at $139.18—up 2% in 24 hours. Analysts suggest that the consistent buybacks could add long-term price support by reducing available supply and boosting staking incentives.

Notably, in February, Aave recorded $210 million in liquidations without incurring bad debt—reinforcing its reputation as a resilient DeFi protocol. With new growth avenues and this token buyback momentum, Aave appears poised for a powerful evolution in the decentralized finance space.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.