Decentralized finance (DeFi) risk management service LlamaRisk has recommended that the Aave lending protocol systematically wind down every reserve across six distinct blockchain networks, marking a significant strategic cleanup for the leading crypto-lending platform. The extensive operational proposal involves retiring Aave V3 markets on Sonic, Scroll, zkSync, Metis, Soneium, and Aptos, alongside cutting dozens of low-adoption token listings globally.
The wide-ranging governance proposal targets a cleanup covering an estimated $98.1 million in supplied assets and $15.6 million in outstanding debt. Working closely with fellow 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, with network balances measured as of July 28.
The initiative is moving through formal governance channels via an Aave Request for Comment, commonly known as an ARFC. In Aave’s decentralized governance structure, an ARFC serves as a detailed proposal and a vital precursor to an official Aave Improvement Proposal (AIP). However, industry observers note that an ARFC is not, by itself, proof of a completed final onchain vote or execution, meaning the ultimate retirement of these markets remains subject to final community ratification.
The proposed exit from the Aptos network stands out as a particularly swift about-face for the protocol, coming a mere 11 months after Aave first launched its V3 market on the ecosystem to expand its multichain footprint. According to data provided by LlamaRisk, available liquidity on the Aptos deployment has plummeted by 94% over a six-month period, while quarterly revenue generated by the instance has fallen below $1,000, rendering the deployment economically unviable under current market conditions.
The cleanup effort spans varying stages of completion across the targeted networks. Every reserve on Scroll, zkSync, Metis, and Soneium had already been frozen prior to the latest comprehensive proposal, whereas reserves on Sonic and Aptos remained active and were specifically recommended for freezing as part of the new framework.
The broader internal debate and strategic temp check regarding Aave’s multichain expansion strategy officially concluded late last year on Dec. 5, 2025. That governance vote passed overwhelmingly with 923,400 votes in favor and under 1% opposing the measures. The community-backed directive called for increasing the reserve factor on underperforming instances, shutting down struggling deployments on zkSync, Metis, and Soneium, and establishing a strict $2 million annual revenue floor for the deployment of any future network instances.
Scroll was subsequently integrated into the category of affected protocols through an accelerated governance process in April. At that time, LlamaRisk filed a direct-to-AIP proposal aimed at freezing every Scroll reserve and raising selected reserve factors. The service provider described the emergency measure as the necessary final step in completing Scroll’s deprecation following a rapid and severe deterioration in network liquidity and overall Aave market activity.
Compounding these operational shifts, Aave published an updated, comprehensive risk framework on June 9. This newly minted framework established rigorous criteria covering asset risk, bridge risk, monitoring procedures, chain risk, and explicit guidelines for winding down underperforming reserves or entire network deployments. This month’s governance announcements indicate the de facto adoption of those strict rules by the protocol, signaling a decisive shift away from experimental multichain growth toward disciplined capital allocation and risk mitigation.
Aave founder Stani Kulechov addressed the strategic pivot in a public post, explaining that the actions will successfully reduce Aave’s economic and technical risk surface. He noted that the adjustments are being executed as a direct part of implementing the new Aave Risk Framework and the Technical Asset Listing Framework.
Despite the sweeping nature of the cleanup, protocol leaders emphasize that the move does not represent a complete reversal of Aave’s broader multichain expansion strategy. Instead, it is being framed as a calculated and strategic refocusing of resources onto select, high-performing protocols and ecosystems. Aave will continue applying continuous risk assessment for all assets across all remaining deployments, ensuring that the protocol remains agile and secure amid shifting market dynamics.
The structural adjustments follow closely on the heels of other major ecosystem developments, including Aave launching its operations on Avalanche earlier this month, as well as ongoing expansion efforts into emerging environments such as Monad, positioning the decentralized lending giant to capture anticipated growth in tokenized real-world assets and advanced DeFi primitives.
