Aave looks beyond traditional crypto lending by exploring a long-term strategy focused on financing solar energy and other real-world infrastructure.
Summary
- Aave founder Stani Kulechov says tokenized solar assets could unlock faster and cheaper financing for clean energy.
- Aave plans to use solar-backed tokens as collateral to improve liquidity and capital recycling.
- The move is aimed at long-term growth beyond traditional crypto-based lending.
This shift was highlighted in a recent article by founder Stani Kulechov, who argues that decentralized finance can play a major role in financing the global energy transition.
Kulechov said on-chain lending has already proven its technical strength with digital assets. The next step, he says, is to integrate real-world productive assets, such as solar farms, into DeFi and turn them into usable collateral.
Transforming solar projects into liquid assets
According to Kulechov, one of the main problems with financing solar energy and infrastructure is illiquidity. Most projects are based on long-term contracts that can last 20 years or more. Investors often accept less flexibility in exchange for stable returns, but this also limits the amount of capital that can flow into the sector.
Tokenization could change that. By turning solar projects into digital assets, investors could trade and transfer their positions more easily. These tokenized assets could also be used as collateral on Aave (AAVE), allowing developers and financiers to borrow funds quickly instead of waiting months for traditional loans.
Kulechov said this could reduce required returns and make projects more attractive. A solar asset that requires a 10% return in private markets might only need 6% if it becomes liquid and tradable. Over time, this could allow capital to be recycled more quickly, allowing the same money to finance multiple projects instead of being stuck for decades.
He also highlighted the potential impact on stablecoins. As solar parks are spread across many countries, their debt could be issued in different currencies. This could create new demand for euro- and pound-backed stablecoins, giving users more options beyond US dollar loans.
Building a new model for DeFi growth
According to Kulechov, loans against major cryptocurrencies have become numerous and extremely competitive. Similar products are currently offered by many DeFi platforms, which has reduced long-term growth potential and lowered margins.
He says solar-backed loans are an alternative. Aave could fund initiatives that generate real cash flow and long-term value rather than relying on speculative assets. This would give depositors access to a “green return” while helping to finance the development of clean energy.
He also pointed out that most retail investors currently have limited access to solar investments. High minimums and complex structures keep many people out. On-chain products have the potential to reduce these barriers and increase accessibility to infrastructure financing.
He believes this strategy reflects a radical change in the way capital should be distributed. DeFi platforms should support productive and scalable assets rather than focusing on government debt or distressed industries.
Kulechov described this as a “dogged” strategy. Users who choose solar-powered products aren’t just looking for returns on investment, he said. They choose to fund creation over extraction and long-term growth over short-term solutions.
If the model works, it could result in a parallel financial system with real infrastructure and revenue supporting lending products and stablecoins.
“Aave will win,” Kulechov concluded, describing this change as both a business strategy and a statement about the future of DeFI.
