Aave Moves to Retire Dozens of Low‑Use Asset Reserves and Wind Down Six Chains

Aave Moves to Retire Dozens of Low‑Use Asset Reserves and Wind Down Six Chains
Table of Contents

TL;DR

  • Reserve Cleanup: Aave plans to offboard 50 low‑adoption reserves and 21 matured Pendle PTs across multiple deployments.
  • Chain Wind‑Downs: Six smaller deployments holding $12.8 million in supplied assets are slated for full retirement.
  • Risk Framework: The initiative follows Aave’s new risk standards introduced after the $292 million KelpDAO exploit.

Aave is preparing one of its largest cleanup efforts to date, proposing the removal of dozens of low‑adoption reserves and the full retirement of six smaller blockchain deployments. The governance initiative, introduced Thursday, outlines changes that would affect about $98.1 million in supplied assets and $15.6 million in outstanding debt across the protocol.

Strategic Review Under New Risk Framework

Founder Stani Kulechov unveiled the proposal, which was prepared by risk provider LlamaRisk following a broad review under the newly proposed Aave Risk Framework. Rather than reacting to any single incident, LlamaRisk applied the framework across all deployments to identify reserves whose activity no longer justifies the operational overhead of maintaining price oracles, liquidation systems, and ongoing monitoring.

The proposal recommends offboarding 50 low‑adoption reserves and 21 matured Pendle Principal Tokens across 11 Aave V3 deployments. It also calls for winding down six smaller deployments — Sonic, Scroll, zkSync, Metis, Soneium, and Aptos — which together account for another 25 reserves. According to the review, individual reserve removals represent $85.3 million in supplied assets and $11.5 million in debt, while the six deployment retirements add $12.8 million in supplied assets and $4.1 million in debt.

Operational Changes for Offboarding

Operational Changes for Offboarding

For affected reserves, Aave plans to freeze new activity, reduce supply and borrow caps to one unit, and raise reserve factors on borrowable assets. Entire deployments slated for retirement would see reserve factors increased to 99% and base interest rates raised to encourage users to unwind positions. The proposal also targets bridged assets that duplicate native listings and matured Pendle PTs that no longer generate yield, along with deployments where protocol revenue no longer covers maintenance costs.

Context From Recent Security Events

The review follows Aave’s proposed risk framework introduced in June after the $292 million KelpDAO bridge exploit, which exposed the protocol to potential bad debt when stolen rsETH was deposited as collateral. Kulechov said the framework would guide listings, reviews, and future deprecations across Aave V3, V4, and Aave Horizon. A companion proposal from LlamaRisk targets long‑tail reserves facing elevated Chainlink price‑feed risk by replacing live feeds with fixed‑price adapters. Aave’s token traded at $95.52, down 2.75% over the past 24 hours.

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