Aave's Stani Kulechov Pushes Back on Ethereum EIP, Warns of Damage to ETH Lending and Yields

ChainCatcher reports that Aave founder and CEO Stani Kulechov has publicly opposed a newly submitted Ethereum Improvement Proposal (EIP), saying it misses its stated objectives and would instead hurt Ethereum. Kulechov criticized a mechanism that would cap ETH staking rewards at 0% once the staking rate rises above 50%. He argued that such a design would make staking returns unpredictable and unattractive, and could make staking uneconomical or outright unworkable for many participants. In his view, this would be a major negative for institutions evaluating ETH exposure, as they may prefer networks offering more predictable cash flows, raising meaningful adoption costs for Ethereum. He also warned that pushing yields toward zero would effectively break ETH lending strategies, wiping out ETH-based lending and yield opportunities and leaving short selling as the primary reason to borrow ETH. He added that investors seeking both ETH beta and yield could shift to other interest-bearing instruments, including stablecoins. Kulechov said the proposal, in his view, undermines ETH's viability as an asset and limits its upside, urging the community not to move it forward. He warned that advancing it could push participants to alternative networks, and stressed that Ethereum should not be penalized for its growth.