Aave to Wind Down Family Wallet and Avara as It Refocuses on Core DeFi Products

• Aave will shut down the Family wallet and operate fully under Aave Labs.
• The shift follows governance issues and regulatory clearance ahead of Aave V4.

Aave has announced a major internal cleanup, shutting down the Family mobile wallet and retiring the Avara brand. It plans to bring all products and teams to operate under the Aave Labs. This decision was made after a period of internal governance disputes. 

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What Will happen in Aave 

Aave will stop accepting new users for its Family iOS wallet starting from April 1, 2026, and it will fully shut down by April 2027. Family Wallet was an iOS wallet app mainly focused on an account-based wallet and easy onboarding. Aave now decided that these wallets are not the best way to bring new users into DeFi, and Aave’s strength is in its financial products, like lending and borrowing. After the shutdown, the existing users will not lose their funds and can access and withdraw assets through accounts.aave.com. These Family account technology will still be used inside the Aave products. 

On the other handotherhand Aave will also retire the Avara brand. Avara was a parent brand to cover Aave, the Lens protocol, and the Family wallet. Aave now believes that the Aave name already sets the brand, and running multiple brands causes confusion to the customers. So Avara is being retired, and Aave Labs becomes the single brand. 

The DecisionDecison comes after Governance Tensions

This decision comes after the concerns inside the Aave community on who owns the Aave brand and about voting power being too concentrated. There are claims that some decisions shifted fee revenue away from the DAO. At one point top 3 wallets controlled over 58% of the governance votes, and this conflict led Aave Labs to simplify decision-making.

Earlier this year, Aave transferred stewardship of Lens protocol to the Mask network, and Lens remains open and permissionless. Aave no longer manages its brand, and this move from Aave shows that it is focusing strictly on DeFi. 

Stani Kulechove, founder of Aave, says that the firm is now fully focused on the Core DeFi service and preparing for the launch of Aave V4. All the current and future products will now run under the Aave Labs, and it also says that it is committed to long-term growth through simpler governance and clearer branding. 

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