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Aave Plans to Shut Down Six Blockchain Deployments in Strategic Network Cleanup

CryptoExpert by CryptoExpert
August 1, 2026
in NFT News
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Aave, the world’s largest decentralized lending protocol, is preparing to streamline its multi-chain footprint by retiring six blockchain deployments and dozens of underutilized asset markets. The proposal, currently under governance review, is part of a broader effort to cut operating costs, reduce risk, and focus resources on networks with stronger user activity.

If approved by the Aave DAO, Aave would phase out deployments on Sonic, Scroll, zkSync, Metis, Soneium, and Aptos, while removing dozens of low-adoption reserves and matured Pendle Principal Tokens (PTs). The proposal affects nearly $98 million in supplied assets, though users would be given time to unwind their positions through a phased migration rather than facing immediate liquidations.

A Cost-Driven Strategic Shift

The proposal, developed by LlamaRisk alongside Aave’s risk providers, is part of the protocol’s updated Risk Framework and Technical Asset Listing Framework.

Maintaining each blockchain deployment requires dedicated infrastructure, including oracle price feeds, liquidation systems, monitoring, and ongoing risk management. While those costs remain largely fixed, several smaller deployments no longer generate enough revenue to justify their upkeep.

Tokenmetrics

Each of the six targeted networks now produces less than $5,000 in quarterly revenue, while Metis, Soneium, and Aptos each generate under $1,000. In contrast, Ethereum remains Aave’s primary revenue driver, generating more than $142 million annually, while the Base deployment contributes roughly $4.7 million per year. The widening gap highlights how economically inefficient several smaller markets have become.

The proposal signals a shift away from expanding across every emerging blockchain toward concentrating liquidity and development on deployments with sustainable demand.

Aave To Shut Down Six Chain Deployments

Aave To Shut Down Six Chain Deployments

User Activity Has Fallen Sharply

The recommendation follows a sustained decline in liquidity across the six affected networks.

Over the past six months, Sonic deposits have dropped 74% to around $7.6 million, while Scroll has fallen 86% to roughly $2.2 million. zkSync has declined 88% to approximately $844,000, Metis has dropped 79% to around $297,000, and Soneium has recorded the steepest decline, plunging 95% to roughly $173,000. On Aptos, available liquidity has contracted 94%, leaving about $1.7 million supplied.

Combined, the six deployments now account for only about $13 million in deposits—well below 1% of Aave’s roughly $14 billion in total value locked across 23 blockchain networks.

More Than Chain Closures

The proposal extends beyond retiring blockchain deployments. Aave also plans to remove:

50 low-adoption asset reserves21 matured Pendle Principal Tokens25 reserves tied to the six affected blockchains

Many of these assets have attracted little borrowing activity despite maintaining deposits, while others have become redundant following the launch of native alternatives. For example, bridged versions of USDC would be phased out where native USDC is already available. MaticX is also slated for removal after Stader Labs announced plans to discontinue support for the liquid staking token.

According to the proposal, eliminating inactive or redundant assets simplifies protocol management while reducing the operational burden on governance and risk providers.

Existing Users Will Have Time to Exit

The proposal does not call for immediate shutdowns. Instead, Aave plans a phased transition designed to encourage users to close positions gradually.

Initially, affected markets would be frozen to new deposits, borrowing, and collateral usage, while existing lending and borrowing positions remain active. Supply and borrowing caps would then be reduced to a single token, preventing new activity while allowing markets to unwind naturally.

For deployments scheduled for retirement, Aave also proposes raising the reserve factor to 99%, directing nearly all borrower interest to the protocol treasury while sharply reducing depositor yields. A 5% base borrowing rate would further encourage borrowers to repay loans and withdraw liquidity.

If necessary, borrowing rates and liquidation parameters could be adjusted further until markets are largely inactive, after which live oracle feeds would be replaced with fixed-price oracles before each deployment is permanently retired.

Part of Aave’s Broader Evolution

The proposal reflects Aave’s broader strategic direction rather than a response to a single event.

In recent months, the protocol has placed greater emphasis on operational efficiency, disciplined expansion, and stronger governance. Earlier governance discussions had already questioned whether several newer blockchain deployments had achieved meaningful product-market fit, with community members proposing minimum revenue thresholds for future expansions.

At the same time, Aave continues investing in initiatives such as Aave V4, institutional DeFi products, and infrastructure upgrades focused on larger, more active markets. Founder Stani Kulechov has described the initiative as primarily a risk-reduction measure aimed at simplifying operations and allocating resources more efficiently.

Founder Stani Kulechov on X (Source: X)Founder Stani Kulechov on X (Source: X)

Founder Stani Kulechov on X (Source: X)

Governance Vote Still Pending

The proposal remains in the Aave Request for Comment (ARFC) stage and must still pass community discussion, an off-chain Snapshot vote, and a final on-chain Aave Improvement Proposal before implementation.

Until then, users are not required to take immediate action.

If approved, the plan would mark one of Aave’s most significant operational consolidations, underscoring a strategic shift from broad multi-chain expansion toward a leaner deployment strategy centered on efficiency, sustainable growth, and long-term resilience.



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