Aave, one of the largest decentralized lending protocols, is moving forward with a major restructuring of its multi-chain footprint. A new governance proposal aims to close V3 markets on six blockchains and remove dozens of underperforming assets from the platform. The initiative covers $98.1 million in supplied assets and $15.6 million in debt, according to figures collected on July 28.

Risk management service LlamaRisk, in collaboration with other Aave service providers, has recommended retiring every reserve on Sonic, Scroll, zkSync, Metis, Soneium and Aptos. That means all 25 reserves on those six chains would be wound down. In addition, the proposal recommends offboarding 50 low-use reserves and 21 matured Pendle principal token listings across 11 deployments.

An ARFC (Aave Request for Comment) is a detailed proposal and a precursor to an Aave Improvement Proposal (AIP). It is not, by itself, proof of a completed onchain vote or final execution. The governance process allows the community to review the technical and economic implications before any irreversible action is taken.

For some of the networks targeted, the action is largely procedural. Every reserve on Scroll, zkSync, Metis and Soneium was already frozen. However, Sonic and Aptos remained active and are now recommended for freezing, which means depositors and borrowers on those chains will need to close their positions or face gradual liquidation as the protocol reduces risk.

Why Aptos Is Being Deprecated

The proposed exit from Aptos comes just 11 months after Aave launched its V3 market there. According to LlamaRisk, available liquidity on the network has collapsed by 94% over six months, and quarterly revenue is below $1,000. The numbers illustrate how quickly a once-promising deployment can become economically unsustainable.

Aave's expansion into multiple networks was part of a broader strategy to become the default liquidity layer across DeFi. But not every chain has attracted enough volume or users to justify the ongoing security and maintenance costs. The Aptos market, despite the initial fanfare, failed to gain meaningful traction after its launch.

The governance decision follows a temp check on Aave's multichain strategy that concluded on Dec. 5, 2025. That preliminary vote saw 923,400 votes in favor and under 1% against increasing the reserve factor on underperforming instances, shutting down zkSync, Metis and Soneium, and establishing a $2 million annual revenue floor for any new instance deployment. The strong majority signaled that the community is willing to make hard choices to protect the protocol's long-term health.

Expanding the Wind-Down Plan

Scroll was added to the list of affected protocols through an accelerated process in April. LlamaRisk filed a direct-to-AIP proposal to freeze every Scroll reserve and raise selected reserve factors. The firm described the measure as completing Scroll's deprecation after a rapid deterioration in network liquidity and Aave market activity.

The addition of Scroll underscores the dynamic nature of Aave's risk management. Rather than waiting for a quarterly review, the protocol can respond quickly when market conditions change. This agility is especially important in the volatile world of DeFi, where liquidity can disappear in a matter of weeks.

Aave also published an updated risk framework on June 9. The document covers asset, bridge, monitoring and chain risk as well as criteria for winding down reserves or entire deployments. This month's announcement indicates de facto adoption of those rules by the protocol community, even if the formal governance vote is still pending.

Founder's Comments on the Restructuring

Aave founder Stani Kulechov commented on the proposal in a Thursday post. He said the move will "reduce Aave's economic and technical risk surface as part of the new Aave Risk Framework and Technical Asset Listing Framework." His remarks suggest that the deprecation of low-activity markets is not a one-off event but part of a systematic approach to risk management.

Kulechov also emphasized that this is not a reversal of Aave's multichain expansion strategy. Rather, it is a strategic refocusing on select protocols that meet certain performance and security benchmarks. "Aave will continue applying continuous risk assessment for all assets across all deployments," he said.

The comments come shortly after Aave launched on Avalanche earlier this month. That launch indicates the protocol is still willing to enter new ecosystems, but with clearer expectations for revenue and usage. The new $2 million annual revenue floor for new instance deployments is a direct response to the failures of earlier expansions.

Understanding the Risk Framework

Aave's risk framework is designed to evaluate both the technical and economic viability of each deployment. It considers factors such as bridge security, network activity, asset liquidity, and overall protocol health. The framework also outlines specific steps for winding down reserves or entire instances when they no longer meet the required criteria.

The offboarding of a reserve is a structured process. Typically, Aave will freeze the asset, preventing new deposits and borrows. Then the reserve factor is gradually increased, making borrowing more expensive and encouraging users to repay their debt. Finally, the reserve is removed entirely if all outstanding positions are closed.

For a full chain wind-down, the process is similar but broader. All reserves on the network are frozen, and users are given time to exit. If necessary, the community can use the protocol's emergency mechanisms to mitigate losses. The goal is to minimize disruption while protecting the solvency of the lending pools.

Impacts on Liquidity and Users

For users currently on the affected networks, the proposal means they will need to migrate their positions to other supported chains. This could create some short-term friction, especially for borrowers who have leveraged positions or complex collateral arrangements. However, Aave has a history of managing such transitions smoothly, and the community typically provides ample warning before any asset is fully removed.

The $98.1 million in supplied assets and $15.6 million in debt are not insignificant, but they represent a small fraction of Aave's total value locked, which spans more than a dozen networks. The cleanup is likely to strengthen the protocol's overall risk profile by eliminating underutilized positions that could become bad debt during a market downturn.

DeFi observers have noted that Aave's willingness to cut underperformers is a sign of maturity. Many protocols have expanded aggressively, only to face governance battles when trying to shut down failed initiatives. Aave's structured approach, with clear criteria and community-approved processes, could serve as a model for others.

Context of Aave's Multichain History

Aave V3 was built from the ground up to be cross-chain compatible. Its architecture supports isolated markets, which allows the protocol to list assets on different networks without posing systemic risk to the entire ecosystem. This design made it easier to launch on many chains simultaneously, from Arbitrum and Optimism to more exotic networks like Soneium and Metis.

However, the very feature that made rapid expansion possible also created an inventory problem. With so many markets and assets, monitoring each one became increasingly difficult. LlamaRisk and other service providers were brought in to help assess risks and recommend actions. The current proposal is a product of that ongoing collaboration.

The decision to wind down certain markets also reflects changing priorities in the DeFi space. As the industry matures, protocols are focusing more on sustainability and profitability rather than simply counting the number of networks they support. Aave's move is consistent with this trend.

Pendle principal tokens, specifically those that have matured, are another category in the offboarding list. These tokens represent positions in yield-generating strategies that have come to an end. Keeping mature tokens active adds no economic value and creates unnecessary listing overhead. Removing them simplifies the protocol's asset inventory and reduces the attack surface for potential exploits.

The Future of Aave's Deployments

Going forward, Aave is likely to be more selective about where it launches V3 markets. The $2 million annual revenue floor is a clear signal that new deployments must demonstrate a viable economic model soon after launch. This will likely favor larger, more active ecosystems with proven demand for borrowing and lending.

At the same time, Aave is expected to continue investing in its leading networks, such as Ethereum, Arbitrum, and Avalanche, where the majority of its activity is concentrated. The protocol's recently announced expansion to Avalanche shows that it is still seeking growth opportunities in high-potential environments.

The governance community will now review the ARFC and decide whether to move to a formal AIP. If approved, the wind-down will proceed in stages, with the exact timeline depending on the level of outstanding activity. As always, participants will have the opportunity to close their positions before any forced liquidations take place.

Source: Cointelegraph News