Introduction
Over the past year, TokenLogic’s mission has remained consistent, provide support to the Aave DAO through:
- Treasury and Runway Management;
- Analytics and Performance Metrics;
- GHO’s growth across DeFi and CeFi; and,
- Support Aave protocol parameter optimisation.
For anyone looking to cross reference with the funding request, please refer to this link.
Treasury and Runway Management
One of the DAO’s core priorities is to ensure a stable and transparent treasury. Throughout the year, TokenLogic oversaw the treasury’s operations without delays or disruptions, maintaining a smooth runway while simultaneously expanding the DAO’s budget to meet its evolving needs.
We successfully supported initiatives such as the Swap Stewards, Rewards Steward, the AFC and ALC, funding updates, reduced Safety Module emissions and implemented ~$20M in AAVE Buybacks. The combined impact of $1M/week in AAVE buybacks as proposed by @ACI, and over 430 AAVE/day Safety Module emission reduction has been a great success. The DAO currently benefiting from a paper profit of $7.5M from the Buybacks and saving 430 AAVE/day, equivalent to $137.6K per day, from reduced Safety Module emissions. These milestones were achieved without compromising the treasury’s health, with the overall non AAVE holdings within the Treasury continuing to grow alongside Aave’s revenue.
Funding updates: February, April, May, June, July and September. Over $43M in swap volume was performed, with over $25M USD via AIPs and over $18M via the AFC SAFE. To facilitate the swaps whilst supporting operations and maintaining the runway, over $7.2M of assets were bridged via AIP.
It is important to note, bridging and swapping of assets via AIP uses non-custodial tooling purpose built for the Aave DAO. With the introduction of the SwapSteward Module and an Allowance set by governance, the AFC will be able to swap assets held in the Treasury without the need for an AIP. This upgrade will reduce both the number of AIPs and the complexity of the PRs leading to time savings for BGD, Certora and TokenLogic.
Over the last year, we have streamlined the DAO’s operations by deploying SAFEs specific to approved budgets, introduced spending limits to individual teams within strict limits and unified the signing configuration across various SAFEs. This initiative has resulted in valuable time savings for services providers through improved autonomy over daily tasks.
Reference: Update SAFE Signers
In addition, TokenLogic has supported the gradual reduction in AAVE emissions across the three Safety Module categories. The transition for stkGHO to an sGHO proxy product resulted in the Aave DAO saving 100 AAVE per day since the 5th June, and yielding a net increase in GHO deposits whilst the new Umbrella stkGHO grew to over 13M in GHO deposits. The stkABPT category emissions continue to be reduced, currently 130 AAVE/day down from 240 AAVE/day from 29th April 2025, with a further reduction expected soon. Mean while liquidity continues to grow on Base and Arbitrum networks.
Ref: Creation of sGHO and the first post Umbrella Safety Module Emission Update.
Analytics and Performance Metrics
Transparency and data-driven decision making remain central to our contribution. Over the past twelve months, we expanded Aave’s analytics infrastructure significantly, adding more than 15 new dashboards and expanding coverage from 6 to 13 networks. These dashboards provide visibility into areas critical for governance and strategy, including:
- The Umbrella Upgrade;
- DAO Buybacks;
- Safety Module Assets;
- sGHO and GHO Stability Modules (GSMs);
- Core Market Data;
- Chainlink SVR integration;
- Interest Rate Monitoring (internal and competitor comparisons); and,
- Underlying Yields Across Leading Protocols.
By strengthening analytics, we aimed to give the DAO a deeper and more actionable view of both protocol operations and broader market trends.
GHO Growth Across DeFi and CeFi
GHO has been a major focus of the past year, as it represents a long-term revenue driver for the DAO. Since January, GHO supply has grown from $150M to over $280M by August. This expansion is revenue-equivalent to more than $1B in borrowing volume on USDC or USDT, demonstrating the value GHO can deliver.
Key milestones include:
- Growing GHO liquidity to over $120M on Prime and $85M on Fluid;
- Achieving GHO’s first centralized exchange listing on Bitget with over 8.3M GHO now held by Bitget users;
- Maintaining a strong peg throughout 2025, with deviations never exceeding 20 bps, reinforcing user trust in GHO; and,
- Deployed stataUSDC and stataUSDT Gho Stability Modules to improve the profitability of GHO via improved capital efficiency.
The stataUSDC and statUSDT Gho Stability Module upgrades have contributed ~$400k in revenue for the DAO to date and averaged ~$55k in daily accrued interest over the last 30-days. We would like to thank @AaveLabs for the opportunity to work with them on preparing the stataGSMs and soon remoteGSMs for production and thank @bgdlabs for their support during the review stage.
Furthermore, we are excited to share the remoteGSM has passed audit by @Certora and soon when the CCIP Bridge Adapter is ready, we will be able to deploy and fund GSMs across many networks to enhance the UX and peg stability of GHO.
Looking ahead, more integrations are planned, broadening both GHO’s availability and utility across ecosystems. At the time of writing, sGHO is being integrated by several wallets and CEX Earn platforms, and we anticipate 2-3 more more CEX listings before the end of 2025.
The expansion of GHO is expected to accelerate with deployments on:
- Linea where we intend to integrate into MetaMasks payments alongside mUSD
- Plasma with the goal of becoming one of the largest decentralised stablecoins within the ecosystem.
- Ink to further deepen the Ink and Kraken integration.
Growth, Incentives, and Ecosystem Expansion
To drive adoption, TokenLogic designed incentive programs for major network campaigns and worked closely with ACI to deliver it. These initiatives have been instrumental in establishing Aave’s presence across ecosystems, including:
- Base, Plasma, Ink, Linea, zkSync, Celo, Sonic
Each campaign was structured to balance short-term growth with sustainable, long-term adoption.
Beyond GHO, we supported the DAO’s business development efforts with Metamask and several large Aave users, ensuring Aave remained well-positioned in both retail and institutional contexts.
Protocol Optimisation and Market Rebalancing
Finally, we contributed to optimising Aave’s market parameters, particularly in the fast-evolving LST/LRT sector. Our work helped rebalance positions across Aave instances, aligning incentives among stakeholders while supporting growth. As a result, the Prime instance surpassed $2B in deposits, strengthening Aave’s leadership in liquid staking markets. A few examples, are linked below:
- zkSYNC parameters updates ahead of the pending incentive program;
- Arbitrum eMode Update to support Entropy’s ongoing DRIPS incentive campaign;
- LRT and wstETH Unification;
- stS Loop Incentive Program enhancing the capital efficiency of stS and wS leverage yield strategy;
- Aave v2 Deprecation Update further continuation of deprecation efforts by the DAO; and,
- Add Fluid Protocol to flashBorrowers extending the Fluid <> Aave alignment by facilitating zero fee flashloans for Fluid users on Aave Protocol.
Conclusion
This publication provides a non-exhaustive overview of TokenLogic’s multi-facet contribution to the Aave ecosystem. The Treasury is in a great position and primed ready to support future growth initiatives.
We have invested heavily in growing GHO whilst Circulating Supply is at an all-time-high, 280M, an extensive amount of work remains.
We look forward to continuing to serve Aave and hope to continue growing together long into the future. We would like to extend a very warm thank you to the Aave community and service providers for the opportunity to contribute to the success of Aave.