Aave Proposes Sweeping Cleanup of V3 Markets, Moving to Wind Down Reserves Across Six Blockchains

Decentralized finance (DeFi) risk management service LlamaRisk has recommended that the leading lending protocol Aave wind down every reserve across six distinct blockchain networks, marking a significant strategic pivot in how the protocol manages its multichain presence. The sweeping cleanup proposal, which addresses a combined $98.1 million in supplied assets and $15.6 million in debt, aims to optimize protocol efficiency, streamline operations, and eliminate underperforming deployments.

An Aave governance proposal outlines plans to wind down the protocol’s V3 markets on six blockchains alongside the retirement of dozens of low-use token listings. Working in tandem with other Aave service providers, LlamaRisk formally recommended the offboarding of 50 low-use reserves and 21 matured Pendle principal token listings spread across 11 different deployments. Furthermore, the proposal targets all 25 reserves operating on Sonic, Scroll, zkSync, Metis, Soneium, and Aptos, with balances having been measured precisely on July 28.

Industry observers note that this governance action is currently circulating as an Aave Request for Comments, commonly known as an ARFC. This detailed proposal serves as a crucial precursor to an official Aave Improvement Proposal (AIP). By design, an ARFC does not constitute proof of a completed final onchain vote or execution, meaning the community still has an opportunity to debate, refine, and vote on the measures before they are permanently enacted on the blockchain.

Aptos Exit Follows Recent Launch

The proposed exit from Aptos has drawn particular attention within the decentralized finance community, coming merely 11 months after Aave initially launched its V3 market on the ecosystem to expand its network footprint. According to data provided by LlamaRisk, available liquidity on the Aptos deployment has plummeted by 94% over the span of just six months, accompanied by quarterly protocol revenue dropping below the $1,000 threshold.

While the Aptos and Sonic deployments remained active and were actively recommended for freezing under the new governance proposals, the situation on Scroll, zkSync, Metis, and Soneium was already well underway. Every single reserve on those four networks had already been frozen prior to the latest comprehensive cleanup initiative.

The underlying foundation for these offboarding steps was solidified late last year when a community temp check on Aave’s broader multichain strategy concluded on December 5, 2025. That vote passed decisively with 923,400 votes in favor and under 1% of the ballots cast opposing the measures. The mandate granted by the community called for increasing the reserve factor on underperforming instances, shutting down deployments on zkSync, Metis, and Soneium, and establishing a strict $2 million annual revenue floor for any future blockchain instance deployments.

Aave weighs closing 6 V3 blockchain markets, offboarding 50 low-use reserves

The Scroll deployment was subsequently addressed through an accelerated governance process in April. LlamaRisk filed a direct-to-AIP proposal designed to freeze every Scroll reserve and raise selected reserve factors. At the time, risk managers described the move as the necessary completion of Scroll’s deprecation following a rapid and severe deterioration in network liquidity and overall Aave market activity.

These network-specific decisions were further reinforced when Aave published an updated risk framework on June 9. That comprehensive document established formal criteria covering asset risk, bridge risk, network monitoring, and chain risk, alongside clear guidelines for safely winding down underperforming reserves or entire chain deployments. Announcements made earlier this month signaled the de facto adoption of these formalized rules across the protocol.

Refining Economic and Technical Risk

Weighing in on the strategic direction, Aave founder Stani Kulechov explained in a social media post that the cleanup initiative will successfully reduce Aave’s economic and technical risk surface. He noted that these actions are being executed as a direct implementation of the newly minted Aave Risk Framework and Technical Asset Listing Framework.

Despite the broad curtailing of activity across several blockchains, developers and core contributors emphasize that this move does not signal a total reversal of Aave’s multichain expansion strategy. Instead, leadership characterizes the shift as a more disciplined, strategic refocusing on select, high-performing protocols where liquidity and user demand justify the ongoing operational footprint.

"Aave will continue applying continuous risk assessment for all assets across all deployments," Kulechov stated, reinforcing the protocol’s commitment to proactive security and financial prudence.

This ongoing refinement of the protocol’s multichain ecosystem occurs alongside concurrent expansion efforts elsewhere. Earlier this month, Aave officially launched on Avalanche, laying vital groundwork for tokenized asset lending. Market analysts continue to monitor how these dual tracks—ruthlessly pruning underperforming deployments while selectively planting flags in high-potential ecosystems—will shape the future trajectory of the decentralized lending giant.

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