Members of the Aave community are advocating for a fee switch proposal following a significant increase in the DeFi protocol's annualized revenue this week.

On June 2, Matthew Graham, a member of the Aave liquidity committee, revealed that the protocol was generating "just over $80 million in annual revenue from seven Aave v3 & v2 deployments" across various blockchain networks, including Ethereum.

Stani Kulechov, Aave's founder, confirmed this achievement, stating, "Aave DAO is now earning $115 million annualized. Let that sink in."

Given Aave's popularity among crypto users, as highlighted in recent reports by CryptoSlate, the substantial revenue has sparked renewed community interest in implementing a fee switch proposal. This mechanism would allow the platform to selectively activate or deactivate specific user fees, potentially redistributing transaction-generated fees to participants of the platform. Similar initiatives are being considered by other DeFi protocols, such as Uniswap.

These discussions come after Marc Zeller, founder of the Aave Chain Initiative, indicated over a month ago that a fee switch proposal was under development. Zeller noted that Aave DAO's robust profit margins provide financial stability for the next five years.

Meanwhile, according to Token Terminal data, Aave has surpassed $20 billion in crypto deposits, a milestone not seen since the collapse of Terra's UST algorithmic stablecoin in 2022.

Market analysts view Aave's growth as indicative of the DeFi sector's swift recovery from the 2022 bear market, which saw the demise of several centralized lenders like Celsius and Genesis. They attribute this increased liquidity to rising investor confidence in Ethereum, buoyed by expectations surrounding the approval of an ETH exchange-traded fund (ETF).

DeFillama data shows that Aave remains the largest crypto-lending platform in the industry, primarily operating on the Ethereum network. The platform recently outlined plans for various initiatives, including the launch of Aave V4, a revamped visual identity, and expanded DeFi functionalities for its user base.