Aave Proposes Sweeping Risk Overhaul, Targeting Six Blockchain Network Deployments
Aave founder Stani Kulechov has proposed a governance plan that would retire six blockchain network deployments and remove reserves from 11 Aave V3 markets. The move, drafted by risk service provider LlamaRisk, aims to reduce risks and operating costs for the lending protocol.
The proposal targets approximately $98.1 million in supplied assets and $15.6 million in outstanding debt on Sonic, Scroll, Aptos, zkSync, Metis, Soneium, and other deployments. It recommends an orderly wind-down of entire markets on these networks while freezing dozens of individual reserves that no longer generate enough activity or revenue to justify their maintenance costs.
The affected networks barely register on Aave's $14.47 billion total value locked, with Sonic holding the largest share at $7.6 million in supplied balance and Scroll at $2.2 million. According to LlamaRisk, Aave is now paying more to support these markets than the revenue they produce.
Aave plans a graduated approach to discourage new activity while giving existing users time to exit. For individual reserves, the protocol would freeze new deposits and borrowing, reduce supply and borrowing caps, and increase reserve factors on assets that can still be borrowed.