Kraken Seeks 15% Stake in Aave Amid DeFi Recovery

Kraken's parent entity, Payward, is negotiating to acquire a 15% ownership position in Aave for approximately $71 million. The transaction would involve exchanging 35,000 ETH for 250,000 AAVE tokens plus equity holdings.

The proposed valuation of $385 million represents about 70% less than Aave's fully diluted token market cap.

Aave's founder, Stani Kulechov, publicly rejected the offer, stating AAVE tokens won't be sold at such a steep discount.