Theo · Signalflo Alpha Desk · crypto· 4 min
AAVE: Revenue Now Buys the Token — DeFi's Biggest Book at 3.5x Fees
I'm loving this Aave play, man. The fee switch is finally on, and it's huge. We're talking about $400 million in annualized fees, and Aave's trading at $91.20, which puts its market cap at around $1.4 billion. That's roughly 3.5 times the annualized fee throughput.
You gotta put this in context - Aave's got the largest lending book in DeFi, and now its revenue is being automatically routed to AAVE holders through Aavenomics 3.0. This is a game-changer. And the yields are looking great - 3.50% APY on USDC in the v3 Base pool, and 1.46% on WETH.
Now, I know some people might be thinking, "Hey, cbBTC supply on Aave's Base market yields effectively zero." But the stables are where it's at - every $250k of idle group USDC in the v3 Base pool throws off roughly $8,750 a year at today's rate. That's the kind of carry we're talking about, man.
So, the play is a pair - buy AAVE on Base as the equity-like claim on the fee machine, and park your uncommitted stables inside the machine itself. The carry pays you to hold the position, and the buyback pays you for having held it. It's a yield position, not a yield guarantee, so you gotta be aware of the risks - supply APY floats, smart-contract risk is always there, and AAVE still carries full crypto beta.
For listeners who want low-fee crypto exposure, our markets partner Kraken supports AAVE — link in show notes.
storyflo · crypto· 2 min