Aave Proposes Closing Six Blockchain Markets Amid Low Liquidity Concerns

Aave is considering closing six V3 blockchain markets and offboarding over 50 low-use reserves, worth around $98.1 million in supplied assets and $15.6 million in debt.

The proposed action comes after DeFi risk management service LlamaRisk recommended that Aave wind down its operations on the Sonic, Scroll, zkSync, Metis, Soneium, and Aptos blockchains.

According to LlamaRisk, available liquidity on Aptos has decreased by 94% over six months, with quarterly revenue below $1,000. This is not a reversal of Aave's multichain expansion strategy, but rather a strategic refocusing on select protocols.

Aave founder Stani Kulechov stated that this move will reduce the protocol's economic and technical risk surface as part of its new Risk Framework and Technical Asset Listing Framework.