Aave Proposes Major DeFi Cleanup Across 17 Blockchain Networks

Decentralized finance protocol Aave has introduced a governance proposal that could remove low-activity assets from its lending reserves and discontinue operations across six smaller blockchain networks as part of a broader effort to strengthen risk management and improve capital efficiency.

The proposed changes would affect approximately $98.10 million in deposited assets and $15.60 million in outstanding debt. The plan was disclosed on July 30 by Aave founder Stani Kulechov and was developed following a portfolio-wide assessment conducted by risk services firm LlamaRisk.

The review was based on Aave’s newly introduced risk framework, which was applied across the protocol’s deployed assets rather than being limited to an assessment of a single reserve. The process examined whether individual assets had sufficient market activity and operational support to remain within the Aave ecosystem.

The proposal recommends removing 50 low-adoption reserves across 11 Aave V3 deployments and eliminating 21 Pendle principal token markets that are approaching maturity.

The plan would also fully discontinue Aave deployments on Sonic, Scroll, zkSync, Metis, Soneium and Aptos. A further 25 reserves operating across those blockchain networks would be affected by the proposed shutdowns.

Risk Framework Focuses on Sustainable Market Infrastructure

Aave’s proposed restructuring reflects a wider effort to apply consistent portfolio risk standards across its ecosystem. The assessment identified reserves that may not have enough activity to justify the continued maintenance of critical infrastructure, including reliable price oracles, liquidation systems and ongoing risk monitoring.

Price oracles provide market data used to determine asset values, while liquidation mechanisms help protect lending markets when borrowers fail to maintain sufficient collateral. Maintaining these systems for assets with limited adoption can increase operational complexity and create risk management challenges.

Under the proposal, affected reserves would be placed into a controlled wind-down process, with new activity restricted and supply and borrowing limits progressively reduced.

For borrowable assets selected for removal, the reserve factor would also be increased. This adjustment would direct a larger portion of borrowing-related revenue toward Aave’s reserves while the affected markets are gradually phased out.

The proposal does not indicate that users would immediately lose access to their deposited funds. Instead, the measures appear intended to limit additional exposure and allow existing positions to be managed during an orderly transition. The changes would require approval through Aave’s decentralized governance process before implementation.

Network Closures Could Streamline Aave Operations

The potential withdrawal from six blockchain networks marks a significant shift in Aave’s multi-network strategy. During the expansion of decentralized finance, lending protocols deployed across multiple blockchains to reach new users and take advantage of lower transaction costs and different technical environments.

However, maintaining numerous deployments can increase governance, security, and operational requirements, particularly when some networks generate limited lending activity. Consolidating resources around more active markets could allow Aave and its risk service providers to focus monitoring and infrastructure investments on deployments with stronger demand.

The proposal may also reduce the number of markets that require continuous oracle maintenance, liquidity oversight, and liquidation support. A more concentrated portfolio could improve operational efficiency while helping the protocol maintain consistent risk standards across its remaining deployments.

The planned removal of low-use reserves and smaller network deployments highlights a more selective approach to expansion within decentralized finance. Rather than maintaining every market indefinitely, the framework would evaluate assets and networks according to their adoption, liquidity, and ability to support reliable risk infrastructure.

If approved, the restructuring could reduce operational complexity and concentrate Aave’s resources on higher-activity markets with stronger liquidity and more sustainable long-term demand.

The proposal is expected to proceed through Aave’s governance process, where community members and token holders will assess the potential impact on users, existing positions and the protocol’s broader lending ecosystem.