Aave Proposes Sweeping Changes to Simplify Operations and Reduce Risk

Aave has proposed a major overhaul of its protocol to simplify operations and reduce exposure to low-utilization assets. The proposal, which was presented by founder Stani Kulechov after a review conducted by LlamaRisk, aims to remove dozens of cryptocurrency reserves and shut down six platform deployments.

The removal of the 50 reserves considered to have low adoption would affect approximately US$ 85.3 million in deposited assets and US$ 11.5 million in debt. Additionally, Aave intends to fully shut down its operations on the Sonic, Scroll, zkSync, Metis, Soneium, and Aptos networks.

The review was not motivated by a specific incident but rather an effort to apply standardized risk management criteria to identify reserves whose activity no longer offsets the costs related to maintaining price oracles, liquidation infrastructure, and continuous monitoring.