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- Aave plans to wind down V3 markets across six blockchain networks.
- The proposal affects over $113 million in supplied assets and outstanding debt.
- The move aims to reduce risk while keeping Aave’s long-term multichain strategy intact.
Aave is preparing for one of its biggest protocol cleanups yet after a new governance proposal recommended shutting down lending markets across six blockchain networks while removing dozens of underused assets. The move is designed to simplify operations, reduce risk, and strengthen the protocol’s long-term sustainability rather than signal a retreat from its multichain ambitions.
If approved through Aave’s governance process, the proposal would affect roughly $98.1 million in supplied assets and $15.6 million in outstanding debt, making it one of the protocol’s most significant restructuring efforts in recent months.
Aave Plans to Retire Underperforming Markets
The governance proposal, submitted with input from risk service provider LlamaRisk and other ecosystem contributors, recommends offboarding 50 low-usage reserves along with 21 matured Pendle principal token listings across multiple deployments.
It also proposes winding down every reserve on Sonic, Scroll, zkSync, Metis, Soneium, and Aptos. According to the proposal, several of these deployments have experienced declining liquidity and limited user activity, making them increasingly difficult to justify from a risk and maintenance perspective.
The recommendation is currently in the ARFC stage, meaning it serves as a governance discussion before any final onchain vote or implementation.
Aptos Faces Early Exit After Weak Growth
One of the proposal’s biggest surprises is the suggested closure of the Aptos V3 market, which launched less than a year ago.
LlamaRisk noted that available liquidity on Aptos has fallen by roughly 94% over the past six months, while quarterly protocol revenue has dropped below $1,000. Those figures helped drive the recommendation to discontinue the deployment despite its relatively recent launch.
Meanwhile, reserves on Scroll, zkSync, Metis, and Soneium have already been frozen, while Sonic and Aptos would be frozen if the proposal moves forward.
New Risk Framework Shapes Aave Strategy
The proposal aligns with Aave’s recently introduced risk management framework, which establishes clearer standards for evaluating blockchain deployments, listed assets, and protocol security.
Aave founder Stani Kulechov said the changes would reduce both the protocol’s economic exposure and technical complexity under the updated framework. He emphasized that the cleanup should not be viewed as abandoning Aave’s multichain strategy.
Instead, the protocol plans to continue expanding where demand and liquidity justify it while conducting ongoing risk assessments across all supported networks. The approach is consistent with Aave’s recent expansion onto Avalanche, showing that the protocol remains focused on growth alongside disciplined capital allocation.
Also Read: Aave V4 Surpasses $250M as Michael Saylor Predicts Bitcoin’s Biggest Shift Yet
The proposed restructuring reflects Aave’s evolving approach to decentralized finance. Rather than maintaining every deployment indefinitely, the lending protocol appears increasingly willing to retire underperforming markets in favor of stronger, more sustainable ecosystems. If approved, the governance proposal would mark another step toward a leaner, lower-risk version of one of DeFi’s largest lending platforms while reinforcing its commitment to long-term efficiency and security.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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