Aave Cuts Low-Use Reserves, Shuts Down Six Blockchain Deployments

Aave, a major decentralized lending protocol, is taking steps to reduce risks and maintenance costs. The protocol plans to remove $98.1 million in underused crypto reserves and close six blockchain deployments. This move is part of Aave's broader strategy to focus on more active markets and improve risk management ahead of its V4 update.

The process will be gradual, encouraging users to close positions naturally by limiting new deposits and increasing reserve factors. This reorganization follows a recent risk incident and aims to streamline operations while maintaining Aave's multichain model.