Aave CEO Criticizes Ethereum EIP Proposal for Undermining ETH Lending and Yield Potential

ChainCatcher report: In response to an EIP proposal submitted by the Ethereum community, Aave founder and CEO Stani Kulechov published a post opposing it, arguing that the proposal fails to achieve its intended goals and instead harms Ethereum. He noted that capping ETH staking rewards at 0% when the staking rate exceeds 50% would make staking yields unpredictable and unprofitable—or even entirely unviable—for many participants, a significant deterrent for institutional buyers considering ETH positions, as they may shift to other networks with more predictable cash flows, imposing substantial adoption costs. Stani Kulechov further stated that reducing yields to zero would render ETH lending strategies essentially unfeasible, effectively eliminating ETH-based lending and yield opportunities, leaving short-selling as the only rationale for borrowing ETH. Meanwhile, holders seeking both ETH beta and yield may migrate to other interest-bearing assets such as stablecoins. He emphasized that, from a personal perspective, the proposal undermines ETH’s viability as an asset and restricts its potential, urging that it not be advanced—otherwise, many participants will redirect their interest to alternative networks—and stressed that Ethereum should not be penalized for its growth.