Aave Seeks Major DeFi Cleanup Amid Risk Management Efforts

Aave has proposed a major cleanup of its decentralized finance protocol across 17 blockchain networks. The proposal, which was disclosed on July 30 by Aave founder Stani Kulechov, aims to strengthen risk management and improve capital efficiency.

The plan would remove approximately $98.10 million in deposited assets and $15.60 million in outstanding debt from low-activity reserves. It also recommends discontinuing operations on six smaller blockchain networks: Sonic, Scroll, zkSync, Metis, Soneium, and Aptos.

The proposal is based on a portfolio-wide assessment conducted by risk services firm LlamaRisk using Aave's newly introduced risk framework. The framework evaluates assets according to their adoption, liquidity, and ability to support reliable risk infrastructure.

Aave's goal is to reduce operational complexity and concentrate its resources on higher-activity markets with stronger liquidity and more sustainable long-term demand.