Aave Plans to Close Six V3 Markets in Strategic Cleanup
Aave governance is considering a proposal to shut down six V3 blockchain markets and retire 50 low-use reserves, affecting $98.1 million in supplied assets. The move follows a new risk framework after declines in liquidity and activity on chains like Aptos.
Quick Take
Aave proposal aims to shut down V3 markets on six blockchains and retire 50 low-use reserves.
Affected deployments include Sonic, Scroll, zkSync, Metis, Soneium, and Aptos, with $98.1M in supplied assets.
Governance temp check passed December 2025 with 923,400 votes supporting the cleanup.
The move aligns with Aave's new risk framework to reduce economic and technical risk surface.
Market Impact Analysis
NeutralProactive cleanup of underperforming markets could improve Aave's efficiency and risk profile, but direct price impact is limited.
Speculation Analysis
Key Takeaways
- Aave governance advances a proposal to shut down six underperforming V3 markets and retire 50 low-use reserves, impacting $98.1M in supplied assets.
- Affected chains include Sonic, Scroll, zkSync, Metis, Soneium, and Aptos, with $15.6M in outstanding debt also at risk.
- A temp check passed in December 2025 with 923,400 votes supporting the strategic cleanup, aligned with Aave’s new risk framework.
- The move reduces Aave’s economic and technical risk surface and refocuses multichain efforts on higher-liquidity protocols.
What Happened
Aave governance is weighing a proposal to sunset V3 lending markets on six blockchains and off-board dozens of underused reserves. Risk service provider LlamaRisk, with other contributors, filed the plan after a temp check overwhelmingly passed in December 2025, garnering 923,400 votes. The offboarding targets Sonic, Scroll, zkSync, Metis, Soneium, and Aptos—together holding $98.1M in supplied assets and $15.6M in debt. If the proposal advances to an Aave Improvement Proposal and wins an on-chain vote, the targeted markets will be frozen and reserves retired, effectively ending Aave’s presence on those networks.
The Numbers
The planned retirement covers six chains, where combined supplied assets sit at $98.1M and debt at $15.6M. Aptos, on-boarded just 11 months ago, saw available liquidity plummet 94% in six months, with quarterly revenue below $1,000. On Scroll, zkSync, Metis, and Soneium, all reserves were already frozen; Sonic and Aptos remain active but face immediate freezing. In addition to the chain-level closures, 50 low-use reserves and 21 matured Pendle principal token listings will be retired across 11 deployments, streamlining Aave’s asset inventory.
Why It Happened
Aave’s updated risk framework, published in June 2026, established clear thresholds for winding down underperforming deployments. The six chains suffered from collapsing liquidity, minimal user activity, and negligible fee generation. Founder Stani Kulechov noted the move reduces Aave’s economic and technical risk surface. Instead of a retreat from multichain, it marks a deliberate pivot toward more active and liquid protocols, with continuous risk monitoring now standard for all deployments.
Broader Impact
This cleanup sets a template for other DeFi protocols to proactively retire stale markets, improving capital efficiency. It may spur similar risk-based strategies across the sector. Aave’s decisive action could also concentrate liquidity in remaining, higher-performing markets, potentially strengthening its core deployment moat.
What to Watch Next
- On-chain vote: If the proposal passes AIP stage, the listed markets will be frozen. Monitor Aave governance for execution timeline.
- Liquidity shifts: Watch for capital migrating from closed markets to active Aave deployments on Ethereum, Polygon, or Avalanche.
- AAVE token: Market reaction to risk reduction vs. the perception of a multichain retreat could sway token performance.
This article is for informational purposes only and does not constitute financial advice.
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