Aave

DeFi Governance: How Aave and Compound Run Billion-Dollar Protocols Through Token Voting

Aave and Compound collectively hold billions of dollars in user deposits and make decisions — about interest rate models, collateral factors, treasury allocations — through governance tokens voted on by their communities. Understanding how that process actually works, where it breaks down, and what it has already decided reveals the real-world mechanics of running critical financial infrastructure as a DAO.