Aave, one of the leading decentralized finance (DeFi) lending protocols, is moving forward with a comprehensive housekeeping effort designed to optimize its operational footprint and mitigate protocol-wide risks. A newly introduced governance proposal aims to wind down Aave’s V3 markets across six distinct blockchains while simultaneously retiring dozens of low-utilization token listings. This broad cleanup initiative encompasses a substantial volume of capital, touching approximately $98.1 million in supplied assets and $15.6 million in outstanding debt across the affected networks and reserves.
The strategic initiative was spearheaded by risk service provider LlamaRisk, which collaborated closely with other key Aave service providers to evaluate the long-term viability and performance of the protocol’s various deployments. Following thorough assessments, LlamaRisk formally recommended the offboarding of 50 low-use reserves alongside 21 matured Pendle principal token listings distributed across 11 different deployments. Furthermore, the proposal calls for the complete retirement of all 25 active reserves residing on Sonic, Scroll, zkSync, Metis, Soneium, and Aptos. All balances and liquidity metrics associated with these sweeping recommendations were officially measured and recorded as of July 28.
Within the framework of Aave’s decentralized governance structure, this development has taken the form of an Aave Request for Comment, commonly referred to as an ARFC. An ARFC serves as a detailed, comprehensive proposal and acts as a crucial precursor to an Aave Improvement Proposal (AIP). Industry participants should note that the introduction of an ARFC does not, by itself, constitute proof of a completed final onchain vote or formal execution. Instead, it marks the beginning of the formal debate, review, and refinement process by the broader community of Aave token holders and governance participants before any definitive smart contract changes or asset offboarding procedures are formally enacted onchain.
Aptos exit follows recent launch
The inclusion of Aptos in the proposed network wind-down stands out as a notable development, coming just 11 months after Aave initially launched its V3 market on the Aptos ecosystem as part of a wider push for cross-chain expansion. Despite the initial enthusiasm surrounding the integration, available liquidity on the Aptos deployment has plummeted dramatically, recording a 94% decline over a six-month period. Consequently, quarterly revenue generated by the Aptos instance has fallen below the $1,000 threshold, according to data provided by LlamaRisk, prompting service providers to reevaluate the economic utility of maintaining the deployment.
The operational status of the various targeted blockchains varies according to their previous performance and governance actions. For instance, every single reserve located on Scroll, zkSync, Metis, and Soneium had already been frozen prior to this latest proposal. In contrast, the Sonic and Aptos deployments remained active at the time of the review, leading LlamaRisk to explicitly recommend freezing their operations as well.
This decisive pivot aligns closely with a broader temp check on Aave’s multichain strategy, which officially concluded on Dec. 5, 2025. That governance vote achieved overwhelming support, securing 923,400 votes in favor with under 1% cast against the initiative. The passed resolution outlined specific measures, including increasing the reserve factor on underperforming protocol instances, shutting down the deployments on zkSync, Metis, and Soneium, and establishing a strict $2 million annual revenue floor for the approval and deployment of any future network instances.
The evolution of this multichain cleanup has unfolded across several sequential governance milestones. Scroll, for example, was subsequently added to the list of affected protocols through an expedited process in April. At that time, LlamaRisk filed a direct-to-AIP proposal aimed at freezing every Scroll reserve while simultaneously raising selected reserve factors. Service providers described the emergency measure as a necessary step to complete Scroll’s orderly deprecation following a rapid and severe deterioration in network liquidity and underlying Aave market activity.
Adding further structure to these decisions, Aave published an updated risk framework on June 9. This comprehensive document established detailed criteria governing asset risk, bridge risk, system monitoring, and chain-level risk, while also laying out clear benchmarks and protocols for winding down underperforming reserves or entire network deployments. The introduction of this month’s governance announcements indicates the de facto adoption and operationalization of those stringent rules by the protocol as part of its ongoing maturation.
Aave founder Stani Kulechov addressed the strategic shift in a public post, explaining that the cleanup efforts will effectively "reduce Aave’s economic and technical risk surface as part of the new Aave Risk Framework and Technical Asset Listing Framework." Kulechov’s remarks emphasize the protocol’s growing emphasis on capital efficiency and risk mitigation, ensuring that developer resources and liquidity are concentrated where they generate the highest sustainable returns and utility for the ecosystem.
Despite scaling back operations on certain underperforming chains and retiring dormant assets, industry observers note that this strategic contraction does not represent a wholesale reversal of Aave’s overarching multichain expansion strategy. Rather, the protocol is adopting a much more disciplined, selective approach focused on nurturing high-performing networks and maintaining rigorous economic standards. "Aave will continue applying continuous risk assessment for all assets across all deployments," Kulechov noted. This balanced trajectory is further highlighted by concurrent expansion efforts elsewhere in the ecosystem, such as Aave’s recent launch on Avalanche earlier in the month, underscoring a calculated redeployment of capital toward thriving sectors of the decentralized finance landscape.
