Aave Phases Out 75 Asset Reserves to Optimize Risk Management

Aave, a decentralized lending protocol, has announced a strategic move to optimize risk management by phasing out 75 asset reserves. The team proposed to gradually close its deployment in six networks and discontinue support for several assets. According to Stani Kulechov, the CEO of Aave, this decision is justified by the need to reduce costs associated with maintaining underutilized assets.

The protocol will cease support for 50 low-utilization asset reserves, affecting a total supply of $98.1 million and outstanding loans of $15.6 million. Additionally, Aave plans to close its deployments in the Sonic, Scroll, zkSync, Metis, Soneium, and Aptos networks, which encompasses another 25 asset reserves.

The reasons for the reduction include excessive maintenance costs for inactive assets, removal of tokens like USDC.e and USDbC where native versions are already available, discontinuation of support for MaticX due to the project being halted by the issuer, and closure of six small markets due to low activity levels.