Aave Targets Low-Adoption Assets in Bid for Protocol Health

Aave is proposing to deprecate about 50 low-adoption asset reserves and fully retire smaller deployments on chains including Scroll, zkSync, and Aptos. The two-part plan aims to streamline Aave's risk surface and capital efficiency, according to a governance proposal announced by the DeFi lending protocol.

The plan was drafted by risk provider LlamaRisk and includes retiring smaller deployments such as those on Scroll, zkSync, and Aptos. These chains are among 50 low-adoption asset reserves that Aave plans to deprecate. The goal is to improve protocol health and potentially boost adoption and token perception.

Aave's founder Stani Kulechov named the affected chains in the governance proposal. According to the filing, the plan is expected to have a modestly bullish impact on the project.