Aave weighs closing 6 V3 blockchain markets, offboarding 50 low-use reserves

DeFi risk management service LlamaRisk recommended that Aave wind down every reserve on Sonic, Scroll, zkSync, Metis, Soneium and Aptos, but action against most of those instances was already taken.

An Aave governance proposal is on the horizon, signaling a significant cleanup operation for the decentralized finance lending protocol. The proposal aims to wind down the protocol’s V3 markets across six distinct blockchains and retire dozens of underutilized token listings. This strategic consolidation is set to encompass approximately $98.1 million in supplied assets and $15.6 million in outstanding debt, representing a substantial recalibration of Aave’s operational footprint.

The impetus for this extensive review and proposed action stems from the recommendations of LlamaRisk, a prominent DeFi risk service provider. In collaboration with other Aave service providers, LlamaRisk has put forth a comprehensive proposal to offboard 50 low-use reserves and 21 matured Pendle principal token listings. These assets are spread across 11 different Aave deployments. Furthermore, the recommendation includes the complete retirement of all 25 reserves currently active on the Sonic, Scroll, zkSync, Metis, Soneium, and Aptos blockchains. The financial figures cited were measured as of July 28, providing a current snapshot of the assets in question.

It is crucial to understand the procedural stage of this recommendation. An ARFC, or Aave Request for Comment, is a detailed proposal and serves as a precursor to a formal Aave Improvement Proposal (AIP). The ARFC itself does not constitute a final on-chain vote or execution of any changes. It is the initial step in the decentralized governance process, inviting community discussion and feedback before any definitive actions are taken.

The proposed exit from the Aptos ecosystem, in particular, is noteworthy. This move comes just eleven months after Aave initially launched its V3 market on Aptos. According to data provided by LlamaRisk, the available liquidity on Aptos has seen a significant decline, dropping by 94% over the past six months. Furthermore, the quarterly revenue generated from this deployment has been consistently below $1,000, indicating a lack of substantial economic activity. This rapid assessment and proposed withdrawal highlight Aave’s commitment to optimizing its resource allocation and focusing on deployments that demonstrate sustained utility and economic viability.

Looking at the other affected blockchains, a pattern of prior action is evident. Every reserve on Scroll, zkSync, Metis, and Soneium has already been frozen. This means that new deposits and borrowing activities on these specific reserves have been halted. The current recommendation proposes to finalize this by completely retiring these instances. In contrast, the Sonic and Aptos markets remain active, and the proposal suggests freezing them as a precursor to their eventual decommissioning.

This proposed consolidation is not an isolated event but rather a continuation of a broader strategic initiative within Aave. A "temp check," or temperature check, on Aave’s multichain strategy concluded on December 5, 2025. This preliminary governance vote saw overwhelming support, with 923,400 votes in favor of the proposed changes. Less than 1% of the votes were cast against the initiative. The core of the temp check’s outcome involved increasing the reserve factor on underperforming instances, shutting down instances on zkSync, Metis, and Soneium, and establishing a minimum annual revenue threshold of $2 million for the deployment of new instances. This indicates a clear mandate from the Aave community to streamline operations and prioritize profitable and active deployments.

The situation with Scroll was subsequently addressed through an accelerated governance process. In April, LlamaRisk filed a direct-to-AIP proposal specifically to freeze every Scroll reserve and increase selected reserve factors. This measure was described as completing Scroll’s deprecation, following a rapid deterioration in network liquidity and Aave market activity on the platform. This demonstrates Aave’s agility in responding to swift changes in market dynamics.

More recently, on June 9, Aave published an updated risk framework. This comprehensive framework outlines criteria for winding down reserves or entire deployments, covering key areas such as asset risk, bridge risk, monitoring protocols, and chain-specific risk factors. The current ARFC, released this month, signals the de facto adoption of these new rules by the protocol, emphasizing a more rigorous and data-driven approach to risk management and operational efficiency.

Aave founder, Stani Kulechov, commented on the proposed changes, stating that they are designed to "reduce Aave’s economic and technical risk surface as part of the new Aave Risk Framework and Technical Asset Listing Framework." This underscores the strategic intent behind the consolidation – to enhance the protocol’s overall resilience and simplify its operational complexity.

Despite this strategic refocusing, the move does not represent a reversal of Aave’s commitment to multichain expansion. Instead, it signifies a deliberate recalibration to concentrate efforts on select, high-performing protocols. Kulechov reiterated, "Aave will continue applying continuous risk assessment for all assets across all deployments." This ongoing commitment to diligent risk management ensures that Aave can adapt to the evolving DeFi landscape. The timing of this announcement is also significant, as it follows Aave’s recent launch on Avalanche earlier this month, demonstrating the protocol’s continued growth and expansion into new ecosystems.

The underlying rationale for these proposed changes is to streamline Aave’s operational infrastructure and reduce its exposure to underperforming or dormant markets. By consolidating its V3 deployments and retiring low-use reserves, Aave aims to enhance efficiency, improve risk management, and focus its development resources on areas with greater potential for growth and user engagement. This proactive approach to portfolio management is crucial for a decentralized lending protocol operating in a dynamic and rapidly evolving market. The Aave community will have the opportunity to review and vote on these proposals through the established governance mechanisms, ensuring that any changes are aligned with the collective interests of its users and stakeholders. The process highlights the maturity of Aave’s governance system and its capacity to adapt to changing market conditions and strategic priorities.