Aave Closes Underperforming V3 Markets on Six Blockchains
Aave has proposed shutting down six V3 markets on various blockchains and retiring a large set of low-usage token listings. The proposal, which is part of Aave's risk-governance frameworks, aims to reduce exposure to markets with limited usage or maturing positions.
The affected markets are located on Sonic, Scroll, zkSync, Metis, Soneium, and Aptos blockchains, where $98.1 million in supplied assets and $15.6 million in outstanding debt are tied up. LlamaRisk, a risk service provider that worked with Aave service providers on the assessment, estimates that 50 low-use reserves and 21 matured Pendle principal token listings will be retired.
Aptos stands out as an exception because it was deployed relatively recently, about 11 months ago. However, liquidity fell by 94% over six months, and quarterly revenue reportedly dropped below $1,000, according to LlamaRisk. The proposal recommends freezing already active reserves on Sonic and Aptos, while full retirement would further narrow Aave's operational footprint.