Aave Faces Structural Shift as BGD Labs Confirms April Exit

BGD Labs, a core development team for the Aave protocol, announced it will cease its service engagement with the Aave DAO when its current contract expires on April 1, 2026, ending nearly four years of direct technical contribution to the project ^[1][2][3].

The exit follows reported disagreements within the community about the protocol’s future and governance direction as Aave shifts toward a v4 architecture; BGD framed the decision in a governance forum post and said it will not seek to renew its contract with the DAO ^[2][1].

BGD said it will continue its existing responsibilities through the contract period to support a smooth transition, and Aave contributors have proposed measures including a security retainer and other restructuring plans to manage the handover ^[3][1]. Some outlets also reported a near-term market reaction to the announcement ^[4].

The confirmed departure of BGD Labs marks a structural change for Aave’s development model and sets a defined timeline for the DAO to implement transition and security arrangements ahead of the April 1 contract end date ^[1][3].