Aave Slashes Underperforming Chains, Cuts $98M+ in Supply

Aave is streamlining its operations by reducing its asset list and winding down deployments on several underperforming chains. The decision, announced by CEO Stani Kulechov, affects $98.1 million in supply and $15.6 million in debt.

The protocol is cutting 50 low-adoption assets and reserves across various adoption platforms, citing a need to lower risk and align its focus. This includes the shutdown of operations on Sonic, Scroll, zkSync, Metis, Soneium, and Aptos, which cover an additional 25 reserves.

The changes are part of Aave's new risk framework and technical asset listing framework, aimed at decreasing monetary and technical risks. By eliminating reserves with low usage, the protocol is reducing its non-static parts that need monitoring, including oracle feeds and parameter tuning.