Aave Winds Down Underused Lending Markets, Six Chains Holding $98M
Aave, a leading DeFi protocol, is set to wind down 50 low-adoption reserves and six chains holding over $98.1 million in supplied assets and $15.6 million in outstanding debt.
The move is part of Aave's effort to streamline its operations and minimize maintenance costs by reducing the protocol's risk surface.
According to a proposal authored by DeFi risk service provider LlamaRisk, the deprecation will affect 50 individual low-adoption reserves across multiple Aave V3 deployments, as well as six full deployments on Sonic, Scroll, zkSync, Metis, Soneium, and Aptos.
The decision to wind down these markets is based on their low adoption rates, with deposits having fallen significantly over the past six months. For example, deposits on Sonic have declined by 74%, while those on Scroll have dropped by 86%.