Crypto exchange Kraken seeks to acquire 15% of DeFi lender Aave, valuing the firm at $385 million amid post-exploit recovery efforts.
Kraken is negotiating to purchase a 15% stake in decentralized finance lender Aave, valuing the company at $385 million. The deal would involve an investment of 35,000 ETH, equivalent to roughly $71 million, in exchange for AAVE tokens and equity in Aave Group.
Aave has been rebuilding after the KelpDAO exploit in April, which led to billions in deposit withdrawals despite Aave’s smart contracts remaining secure. The incident left the protocol with significant bad debt, prompting efforts to stabilize its operations.
The potential investment aligns with Kraken’s parent company Payward’s strategy to diversify ahead of a possible IPO. Sources indicate this could be the first in a series of deals aimed at expanding Kraken’s footprint in the DeFi sector.