Aave’s founder Stani Kulechov announced a bold move on July 30. The lending protocol plans to phase out dozens of underused asset reserves and shut down operations on six blockchain networks. This cleanup targets around $98.1 million in supplied assets and roughly $15.6 million in outstanding debt, marking one of the more significant reshuffles in Aave’s recent history.
Six Chains on the Chopping Block
Among the blockchains losing Aave deployments are Sonic, Scroll, zkSync, Metis, Soneium, and Aptos. Collectively, these six smaller markets hold $12.8 million in supplied assets and $4.1 million in borrowed funds. Sonic stands out with $7.6 million supplied and $2.7 million borrowed but has seen a dramatic 74% decline in deposits over the past six months. Scroll and zkSync suffered even sharper drops, with deposits shrinking 86% and 88%, respectively. Aptos' liquidity nearly evaporated, plunging 94% to just $1.7 million supplied.
Low-Use Assets Face Removal Across Larger Deployments
But the cleanup extends beyond those six chains. The governance proposal also calls for removing 50 low-adoption asset reserves and retiring 21 matured Pendle principal tokens across 11 larger Aave deployments. These assets combined represent $85.3 million in supply and $11.5 million in debt. Many of these tokens are older bridged assets or duplicated versions, now replaced by native tokens that offer better utility. For example, bridged USDC variants are being phased out in favor of native versions. This shift signals Aave’s focus on streamlining liquidity and cutting operational costs.
The rationale behind these closures stems from an evaluation by risk provider LlamaRisk. They concluded that the revenue generated by these six deployments was too small to cover ongoing costs like price feed maintenance and system monitoring. The community must still approve the proposal through a DAO vote before any final changes take place.
Users currently holding positions in the affected reserves won’t be forced out immediately. Instead, the protocol plans to freeze new deposits and increase borrowing rates to gently encourage borrowers and suppliers to exit over time. This phased approach aims to maintain system stability and minimize sudden disruptions.
As the broader crypto market experiences volatility and regulatory pressures, Aave’s aggressive pruning of underperforming chains and tokens highlights how DeFi platforms are adapting to sustain efficiency and relevance. The protocol’s move echoes a trend of rationalizing protocols, focused on core assets and networks that drive the most engagement.
Disclaimer: This material is for informational purposes only and does not constitute financial advice.
