Prolonged Aave Dispute Triggers Massive Fund Inflows to Sky Ecosystem Over Past 3 Months

Internal conflicts plaguing Aave continue to persist, significantly impacting the platform’s ecosystem. According to ChainCatcher’s report based on Yujin’s analysis, governance disputes between the Aave development team and the community have created serious tensions that affect user trust in the platform.

Notable Decline in Locked Value

The effects of the Aave dispute are clearly seen in the dramatic shift in locked value. Over a three-month period, the total value locked (TVL) in Aave dropped sharply from $36 billion to $26.5 billion, reflecting a large exodus of users and funds from the main Aave platform. This nearly $10 billion decrease shows how internal conflicts can trigger massive capital movements within a protocol.

Fund Migration: From Aave to Sky and Spark

This fund migration becomes even clearer when observing resource movements by key actors in the ecosystem. Sun Zhen has liquidated approximately $910 million in stablecoins from Aave and strategically allocated them to the Sky and Spark platforms, which are sub-DAOs within the broader decentralized Aave ecosystem.

This capital movement indicates a trend of users seeking alternatives within the Aave protocol family. Since early December, Sun Zhen’s deposit positions in Sky and Spark have grown from $570 million to $1.48 billion. This transformation marks a significant shift, with Sky now replacing Aave as the primary savings platform for major stakeholders. The ongoing disputes have driven large-scale resource reallocation, reflecting market responses to governance instability within the core Aave platform.