Aave Proposes Closure of 50 Low-Use Reserves Worth Nearly $100 Million

Aave's founder Stani Kulechov has proposed a plan to close 50 low-use reserves on the protocol, worth nearly $100 million. This move aims to reduce Aave's economic and technical risk exposure under its new protection system.

The review targeted cryptocurrencies with activity that 'no longer justifies the costs of supporting price oracles, liquidation infrastructure, and ongoing risk monitoring.'

Affecting digital assets worth $98.1 million and liabilities valued at $15.6 million, Aave plans to freeze new activity and reduce supply and borrowing limits for the affected reserves.