Aave Offboards Low-Liquidity Reserves, Shuts Down Six Network Deployments

Aave is implementing changes to its protocol, offboarding low-liquidity reserves and shutting down deployments on six blockchain networks. The move affects approximately $98.1 million in supplied assets and $15.6 million in outstanding debt.

The proposal was prepared by LlamaRisk as part of the new Aave Risk Framework, which introduces regular reviews of every protocol deployment. Stani Kulechov, founder of Aave, announced the initiative, citing an updated risk management approach that aims to phase out reserves whose maintenance no longer justifies the cost.

The proposal calls for offboarding 50 low-activity reserves and 21 expired Pendle Principal Tokens (PTs). It also recommends winding down Aave deployments on Sonic, Scroll, zkSync, Metis, Soneium, and Aptos. The changes affect $113 million in total, with individual reserves impacting $85.3 million in supplied liquidity and $11.5 million in debt.

Aave plans to disable new positions and reduce supply and borrowing limits for reserves marked for offboarding. Across the six networks proposed for closure, reserve factors would be raised to 99%, while base interest rates would increase to encourage users to close positions and withdraw their funds.