Uniswap and Aave Power DeFi Fee Rebound to $600M as Buybacks Drive Momentum - Crypto Economy

TL;DR

• September’s DeFi fee revenue surged to approximately $600 million, a 76% increase from March’s $340 million, with Uniswap and Aave leading the charge.
• Uniswap’s governance approved a $165 million funding plan and laid the groundwork for a ‘fee switch’ to benefit UNI holders.
• Aave introduced a framework to route surplus revenue into regular buybacks and ecosystem reserves, linking earnings to token performance.

In September 2025, decentralized finance (DeFi) protocols experienced a significant resurgence, generating approximately $600 million in fee revenue. This marks a 76% increase from the $340 million recorded in March, signaling a robust recovery in the DeFi sector. Leading this rebound are Uniswap and Aave, two prominent platforms in the DeFi ecosystem. Other rising protocols, such as Ethena, also contributed to overall revenue growth, reflecting increased trader engagement and innovative token designs that reward holders.

Uniswap, the largest decentralized exchange, has been at the forefront of this revival. Earlier this year, Uniswap’s governance approved a $165 million funding plan aimed at enhancing the protocol’s infrastructure and expanding its ecosystem. This move is part of a broader strategy to strengthen Uniswap’s position in the DeFi space. The exchange has also seen a rise in trading volumes as users rotate back toward projects with strong fundamentals.

Uniswap’s Strategic Initiatives

A key component of Uniswap’s strategy is the implementation of a ‘fee switch’ mechanism. This feature, set to be activated with the release of Uniswap v4 on the Unichain network, will direct a portion of trading fees to UNI token holders. The introduction of this mechanism is expected to align the interests of the protocol with its token holders, potentially increasing the value proposition of holding UNI tokens. Uniswap also continues to explore cross-chain integrations, which could further boost liquidity and revenue streams.


Aave’s Buyback Framework

Similarly, Aave has adopted a proactive approach to enhance its tokenomics. The platform has introduced a framework that allocates surplus revenue into regular buybacks and ecosystem reserves. This strategy aims to reduce the circulating supply of AAVE tokens, thereby potentially increasing their value. By linking earnings directly to token performance, Aave seeks to create a sustainable model that benefits both the protocol and its token holders. Analysts note that Aave’s approach may set a precedent for other lending protocols seeking to improve token incentives while maintaining strong governance practices.

These developments indicate a shift in the DeFi landscape, where protocols are increasingly focusing on sustainable financial models and aligning their incentives with those of their token holders