Aave DAO has proposed a $50 million annual AAVE buyback program, aiming to bolster token value while the protocol finalizes its V4 upgrade.
Summary
- Aave DAO is proposing a $50 million yearly AAVE buyback program, executing weekly purchases between $250,000–$1.75 million, fully funded from protocol revenue.
- The proposal coincides with the finalization of Aave V4, featuring the CCLL for multi-chain collateralization and borrowing.
- AAVE price trades near $220 within a descending channel. Momentum indicators suggest easing selling pressure, but support levels around $135–$150 could be tested if the downtrend persists.
Aave DAO is proposing a long-term $50 million annual AAVE buyback program aimed at strengthening the token’s value and optimizing treasury use.
The plan would execute weekly purchases between $250,000 and $1.75 million, with flexibility for the Aave Finance Committee to adjust based on market conditions, token volatility, and available protocol revenue. The buyback program would be funded entirely from protocol revenue.
The initiative follows a previous program where weekly buys were around $1 million. It is currently in the ARFC stage, open for community feedback before moving to a snapshot and eventual governance vote.
The proposal comes as Aave V4 is being finalized for launch. Central to the update is the Cross-Chain Liquidity Layer (CCLL), which aggregates liquidity across multiple blockchains, enabling users to collateralize assets on one chain and seamlessly borrow on another.
AAVE price technical outlook
Meanwhile, Aave (AAVE) price continues to extend its downtrend, moving within the descending channel that has been in place since August. Currently trading around $221, the token is moving near the mid-point of this channel. RSI and MACD suggest that the selling pressure is easing, raising the possibility of a consolidation phase before any potential breakout.
However, if AAVE price continues following the downtrend, the lower boundary of that channel projects around $140–$150 based on the current slope of the descending channel. This aligns closely with the $135 target projected by analyst Ali Martinez, who identified that level as a key support zone based on historical price action.
