Kraken, part of Payward, is in talks to take a 15% stake in DeFi lender Aave at a $385 million valuation — reportedly putting up 35,000 ETH for 250,000 AAVE plus an equity slice.

Aave founder Stani Kulechov pushed back hard, saying there is 'NO WAY' Aave would sell AAVE at a 70% discount to its fully diluted value.

The talks are part of Payward's push to diversify ahead of a possible IPO, with the Aave stake slated as the first deal for its new Payward Asset Management arm.