Aave Deprecates Dozens of Low-Activity Reserves, Shuts Down Six Blockchain Deployments

Aave, a decentralized lending protocol, is undertaking a major effort to reduce its economic and technical risk. The project will deprecate dozens of low-activity asset reserves and shut down six blockchain deployments. This move affects approximately $98.1 million in supplied assets and $15.6 million in outstanding debt.

Aave's founder Stani Kulechov stated that the protocol aims to reduce its risk surface as part of the new Aave Risk Framework and Technical Asset Listing Framework. The effort is based on a review by DeFi risk service provider LlamaRisk, which identified reserves with limited activity.

The six complete market closures include Sonic, Scroll, zkSync, Metis, Soneium, and Aptos. These deployments have seen significant declines in deposits over the past six months, with some experiencing drops of up to 95%. For example, deposits on Sonic fell 74% to $7.6 million, while those on Aptos declined by 94%.

Aave will wind down the affected reserves gradually, allowing users time to exit their positions. The protocol may increase reserve factors or raise borrowing rates in some cases to encourage suppliers to withdraw and borrowers to repay.