Compliance Profile of Aave
🔑 Key Company Data
| Field | Details |
|---|---|
| Trading Name | Aave |
| Legal Entity | AAVE LIMITED |
| Activities | Development of the Aave Protocol, DeFi lending and borrowing services |
| Location | London, United Kingdom |
| Regulations | Unlicensed; operates as a software firm in the DeFi sector |
| Key People | Stani Kulechov (Founder & CEO), Nicole Butler (Chief Compliance Officer) |
| Latest News | Launch of GHO stablecoin; expansion across multiple blockchains |
| Latest Update | April 2025 |
| PCI DSS Level | Not applicable – no card data processed |
📦 Offering Overview
Aave is a leading decentralized finance (DeFi) protocol that enables users to lend and borrow cryptocurrencies without intermediaries. The platform offers features like Flash Loans and aTokens, which accrue interest in real-time. Aave operates across multiple blockchains, including Ethereum, Polygon, and Avalanche, and continues to expand its ecosystem. YourStory
⚖️ Regulatory & Legal
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Jurisdiction: United Kingdom
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Licenses: None – operates as a software development company without financial service licenses
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Legal Status: Legally operates as a software provider; not subject to financial conduct regulations
🔐 Security & Audit Profile
| Element | Status |
|---|---|
| Auditors | Trail of Bits, ConsenSys Diligence, and others |
| Last Audit | 2023 (Aave V3) |
| Bug Bounty Program | Active – hosted via Immunefi |
| Smart Contract Risk | Low – extensively audited and publicly reviewed |
🌍 Reputation & User Experience
| Category | Notes |
|---|---|
| User Ratings | Mixed – highly regarded among developers; varied feedback from end-users |
| Trustpilot Score | Not available |
| App Store Rating | Not available |
| Public Sentiment | Strong presence in the DeFi community; regular media coverage |
👤 Team & Transparency
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Founder: Stani Kulechov – Publicly active, known for contributions to DeFi development
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Team: Publicly known; includes experts in legal, product development, and compliance
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Transparency: High – regular updates, open GitHub, clear DAO interface
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Governance Model: Controlled via the Aave DAO using AAVE tokens
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Concerns: Influence of venture capitalists on governance
🔎 Due Diligence on Key Executives
Stani Kulechov – Founder & CEO
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Background: Finnish entrepreneur with a legal background; founded Aave (originally ETHLend) in 2017.
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Experience: Recognized as a leading figure in DeFi; featured in various industry publications.
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Public Presence: Active on social media and in the DeFi community.
Nicole Butler – Chief Compliance Officer
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Background: Previously served as the UK Compliance Lead and Deputy MLRO at Coinbase.
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Experience: Brings extensive experience in compliance within the crypto industry.
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Public Presence: Active in regulatory discussions and compliance forums.
🧾 PayRate42 Risk & Trust Rating
| Category | Rating | Color | Notes |
|---|---|---|---|
| Legal Structure | Solid | 🟢 Green | UK-based, clearly incorporated |
| Regulatory Status | Unlicensed | 🟠 Orange | Operates legally, but without regulatory oversight |
| Compliance Risk | Moderate | 🟠 Orange | No formal licenses; operates in a regulatory gray area |
| Audit & Security | Strong | 🟢 Green | Top-tier audits, active bug bounty program |
| PCI DSS Scope | Not applicable | ⚫ Black | No card data or custodial services |
| Online Reputation | Mixed | 🔴 Red | Varied user feedback; strong developer support |
| Transparency | High | 🟢 Green | Public team, open governance, active community engagement |
| Customer Support | Limited | 🟠 Orange | No formal support; issues often addressed by the community |
🧠 Conclusion
Aave stands as a prominent player in the DeFi space, offering innovative lending and borrowing solutions across multiple blockchains. While it operates without formal regulatory oversight, its transparent operations, strong security measures, and active community governance contribute to its credibility. However, potential users should be aware of the inherent risks associated with unregulated DeFi platforms.
🟠 Final Rating: ORANGE – “Legitimate but Unregulated”
