Stani Kulechov rejects CoinDesk report on Kraken-Aave deal, calls reported valuation a 70% discount

Aave founder Stani Kulechov has publicly rejected a CoinDesk report claiming Kraken’s parent company Payward is negotiating to acquire a 15% equity stake in Aave Group for approximately $385 million, saying the reported valuation implies a roughly 70% discount on the protocol’s fully diluted value that Aave would never accept.

According to an earlier report by CoinDesk, Payward has been discussing a transaction that would give it a 15% equity stake in Aave Group alongside 250,000 AAVE tokens in exchange for approximately 35,000 ETH. The publication, citing unnamed sources and a document it reviewed, estimated the proposed transaction at roughly $385 million.

However, Kulechov quickly challenged the characterization of the deal, arguing that the reported valuation paints an inaccurate picture of the ongoing discussions.

Posting on X, formerly Twitter, Kulechov dismissed the reported figures, saying there was “NO WAY” Aave would agree to sell tokens at what he described as roughly a 70% discount compared with the protocol’s fully diluted valuation.

Rather than denying that conversations had taken place, Kulechov clarified that Aave Labs holds an allocation of AAVE tokens that has attracted interest from several market participants seeking long-term strategic partnerships. He maintained that the report misrepresented both the nature of the discussions and the valuation involved.

Kraken investment talks face pushback over reported valuation

The controversy surrounding the Kraken investment talks stems largely from the reported valuation attached to the proposed transaction.

CoinDesk reported that the package under discussion would include 35,000 ETH, 250,000 AAVE tokens and a 15% ownership stake in Aave Group. Based on documents reviewed by the publication, the deal was valued at approximately $385 million.

The report also cited two people familiar with the matter who claimed Kraken planned to syndicate part of the investment, placing its own financial exposure at roughly $71 million.

Neither company officially confirmed the reported transaction. A Kraken spokesperson declined to comment on the report, while Aave did not respond before publication.

Although Kulechov rejected the reported valuation, his statement suggested that discussions involving Aave-related assets are indeed taking place. His clarification indicates that any negotiations are focused on strategic partnerships rather than a discounted acquisition of AAVE tokens.

His comments also underscored the strength of Aave’s financial position. According to Kulechov, the Ethereum-based lending protocol currently generates around $134 million in annualized revenue, with all protocol revenue flowing directly to the Aave DAO instead of Aave Labs.

That distinction is important because Aave Labs now operates primarily as a development organization serving the decentralized autonomous organization, rather than collecting protocol revenue itself.

Payward continues expanding beyond crypto trading

Regardless of how the Kraken investment talks ultimately develop, the reported discussions align with Payward’s broader strategy of expanding beyond its traditional cryptocurrency exchange business.

According to CoinDesk, a third person familiar with the company’s plans said the proposed Aave transaction would become the first investment executed through Payward Asset Management. The new business unit is reportedly being established to pursue strategic investments across decentralized finance and the broader digital asset ecosystem.

Such a move would represent another step in Kraken’s ongoing diversification strategy. Over the past year, the company has steadily expanded into regulated derivatives, tokenized financial products and institutional crypto services, positioning itself as more than just a cryptocurrency exchange.

Kraken and Aave already share an existing relationship. Last year, Kraken’s Layer-2 blockchain, Ink, launched Tydro, a white-label lending protocol built using Aave’s technology. That collaboration demonstrated how both organizations have already found common ground in expanding decentralized finance infrastructure.

Industry observers note that closer cooperation between established crypto exchanges and leading DeFi protocols has become increasingly common as companies seek new revenue streams while maintaining exposure to blockchain-native financial products.