- Aave plans to remove 75 markets across multiple deployments.
- Changes affect $98.1 million in supplied assets and debt.
- Six blockchain deployments face full wind-down plans.
Aave governance has introduced a proposal to remove underused assets and reduce operations across several blockchain networks. The Aave governance proposal would affect 75 asset markets, including 50 low-adoption reserves and 21 matured Pendle Principal Tokens. The changes cover about $98.1 million in supplied assets and $15.6 million in outstanding debt.
Aave founder Stani Kulechov announced the initiative after a review by risk provider LlamaRisk. The assessment follows the protocol’s proposed risk framework, which aims to create broader standards for asset listings and future market reviews.
Aave Governance Proposal Plans Six Network Wind Downs
The Aave governance proposal recommends ending support for six smaller deployments, including Sonic, Scroll, zkSync, Metis, Soneium, and Aptos. These network changes involve 25 additional reserves that will be removed from active support.
According to the proposal, individual reserve removals account for $85.3 million in supplied assets and $11.5 million in debt. The full deployment wind-downs represent another $12.8 million in supplied assets and $4.1 million in outstanding loans.
The changes target assets that no longer justify operational costs, including oracle maintenance, liquidation systems, and risk monitoring. Aave also plans to remove bridged assets that duplicate native listings and expired Pendle PT markets.
For affected reserves, Aave will freeze new activity and reduce supply and borrowing limits. The protocol also plans higher reserve factors to encourage users to close existing positions.
Aave Governance Proposal Expands Risk Management Strategy
The Aave governance proposal follows the introduction of a new risk framework after the KelpDAO bridge exploit. The incident exposed potential bad debt risks after stolen rsETH was deposited as collateral.
LlamaRisk also proposed replacing certain Chainlink price feeds with fixed-price adapters for assets with higher risk concerns. The framework will guide future reviews across Aave V3, V4, and Aave Horizon. At press time, AAVE traded near $97.44, down 1.18% over 24 hours.
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