Aave Winds Down Six Chain Deployments Amid Revenue Decline

Aave has announced plans to shut down six chain deployments in an effort to reduce its operational and technical risk. The affected chains include Sonic, Scroll, zkSync, Metis, Soneium, and Aptos.

The shutdown will impact a total of 75 reserves covering $98.1 million in supplied assets and $15.6 million in outstanding debt. Aave cited declining revenue as the reason for the wind-downs, stating that it no longer generates enough income to support its operations on these chains.

In preparation for the shutdown, reserves will be frozen, supply and borrow caps will be set to 1, and reserve factors on borrowable assets will be raised to encourage organic repayment and withdrawal. According to Stani Kulechov, 'the L2 shutdowns do not reflect a negative view on those networks.' Instead, Aave aims to focus its resources on higher-impact priorities.