The Aave community is advocating for a fee switch proposal following the DeFi protocol's record-breaking annual revenue this week. Matthew Graham of the Aave liquidity committee reported on June 2 that the protocol was generating "just over $80 million in annual revenue from seven Aave v3 & v2 deployments" across multiple blockchain networks, including Ethereum. Aave founder Stani Kulechov confirmed this achievement, noting that the Aave DAO now earns $115 million annually.

The substantial revenue has sparked renewed interest in implementing a fee switch proposal within the community. Such a proposal would enable the platform to selectively activate or deactivate user fees, potentially redistributing transaction-generated fees among platform participants. Similar initiatives are being considered by other DeFi protocols like Uniswap.

Calls for a fee switch have intensified following Marc Zeller's previous mention, over a month ago, that development of such a proposal was underway. Zeller emphasized that the Aave DAO's strong profitability provides a robust financial foundation for the next five years.

In parallel, Token Terminal data indicates that deposits in Aave have surpassed $20 billion, marking a significant milestone not seen since the 2022 crash of Terra’s UST algorithmic stablecoin. Market analysts interpret this growth as a sign of the DeFi sector's rapid recovery from the 2022 bear market, which saw the collapse of several centralized lenders. They attribute the increased liquidity to rising investor confidence in Ethereum, bolstered by optimism surrounding the potential approval of ETH exchange-traded funds (ETFs).

DeFillama data further underscores Aave's position as the largest crypto-lending platform, particularly on the Ethereum network. Aave has announced plans to roll out several initiatives, including the introduction of Aave V4, a refreshed visual identity, and expanded DeFi functionalities for its user base.