Aave Winds Down Six Blockchain Networks to Clean Up $98M in Assets

Aave is planning to wind down its operations on six blockchain networks in an effort to clean up $98.1 million in supplied assets and $15.6 million in debt. The move was announced by Aave founder Stani Kulechov, who stated that the protocol plans to retire dozens of low-use asset reserves across multiple deployments.

The proposal targets six deployments holding a combined $12.8 million in supplied assets and $4.1 million in debt. The largest affected deployment is Sonic, which has seen its deposits fall by 74% over the past six months.

Aave will initially freeze affected reserves and reduce supply and borrowing caps to one unit. Existing positions can remain open, but users will be unable to make new deposits, borrow more funds, or use the affected assets as fresh collateral.