The proposal, formally presented as an Aave Request for Comment (ARFC), outlines a multi-pronged approach to streamline Aave’s vast multi-chain presence. At its core, it recommends the offboarding of 50 low-use reserves and 21 matured Pendle principal token listings spread across 11 different deployments. More dramatically, it advocates for the complete retirement of all 25 existing reserves on the Sonic, Scroll, zkSync, Metis, Soneium, and Aptos blockchains. These balances, meticulously measured as of July 28, serve as the quantitative basis for the proposed actions, highlighting the economic rationale behind shedding instances that no longer meet Aave’s evolving performance thresholds.

For those unfamiliar with Aave’s governance structure, an ARFC is a critical preliminary step in the decentralized decision-making process. It signifies a detailed, well-researched proposal that solicits community feedback and discussion before potentially advancing to an Aave Improvement Proposal (AIP) – the final stage where on-chain voting and execution occur. This deliberative approach underscores the transparent and community-driven nature of Aave’s evolution, ensuring that significant strategic shifts are thoroughly vetted by token holders.

The rationale behind these proposed wind-downs stems from an increasingly sophisticated understanding of risk and efficiency in the complex multi-chain DeFi landscape. LlamaRisk, a trusted service provider within the Aave ecosystem, collaborated with other key contributors to identify deployments and assets that contribute disproportionately to the protocol’s operational overhead and risk surface without delivering commensurate value or revenue. Supporting a multitude of fragmented deployments, each with its unique set of bridging, oracle, and smart contract risks, can dilute liquidity, complicate monitoring, and expose the protocol to unforeseen vulnerabilities. By consolidating liquidity and focusing resources on more robust and active markets, Aave aims to create a more resilient and capital-efficient platform.

One of the most striking aspects of the proposal is the recommended exit from Aptos, a blockchain where Aave had only launched its V3 market a mere 11 months prior. This relatively rapid reversal speaks volumes about the dynamic and often unforgiving nature of the DeFi space, where initial excitement does not always translate into sustained user adoption or liquidity. According to LlamaRisk’s analysis, available liquidity on Aave’s Aptos deployment had plummeted by a staggering 94% over a six-month period, with quarterly revenue dipping below a critical $1,000 threshold. This swift decline serves as a stark reminder that even well-intentioned expansions into nascent ecosystems carry substantial risks and necessitate continuous performance evaluation.

While the proposal marks a significant new step, it also formalizes and extends actions that have been underway for several months. For instance, every reserve on Scroll, zkSync, Metis, and Soneium had already been frozen due to their underperformance and minimal activity. The current ARFC specifically targets Sonic and Aptos, which remained active, recommending their immediate freezing to complete the wind-down process across all six identified blockchains. This phased approach demonstrates a methodical and data-driven strategy by Aave’s governance, allowing for gradual adjustments based on real-time market conditions and community consensus.

The foundation for this strategic refocusing was laid well in advance, notably through a “temp check” on Aave’s multi-chain strategy that concluded on December 5, 2025. This crucial temperature check garnered overwhelming support, with 923,400 votes in favor and less than 1% against, for measures designed to optimize Aave’s multi-chain footprint. Key outcomes included increasing the reserve factor on underperforming instances, the definitive shutdown of instances on zkSync, Metis, and Soneium, and the establishment of a rigorous $2 million annual revenue floor for any new instance deployment. This revenue floor is a particularly important policy, setting a high bar for future expansions and ensuring that Aave only commits resources to environments with clear potential for sustainable growth and profitability.

Following this initial temperature check, Scroll was subsequently 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, explicitly describing the measure as completing Scroll’s deprecation after a rapid deterioration in network liquidity and Aave market activity. This demonstrates the protocol’s agility in responding to quickly evolving market conditions and its willingness to act decisively when a deployment fails to meet expectations.

Further bolstering these strategic shifts, Aave published an updated risk framework on June 9, covering critical areas such as asset, bridge, monitoring, and chain risk. This comprehensive framework also established clear criteria for winding down reserves or entire deployments. The recent announcement of this ARFC indicates the de facto adoption and practical application of these new rules by the protocol, showcasing a mature and proactive approach to managing its vast and complex operations.

Aave founder Stani Kulechov reinforced the importance of these actions in a Thursday post, stating that this strategic consolidation will “reduce Aave’s economic and technical risk surface as part of the new Aave Risk Framework and Technical Asset Listing Framework.” Kulechov’s comments underscore the dual benefits of the proposal: not only does it enhance financial efficiency by removing unproductive assets and deployments, but it also significantly mitigates technical vulnerabilities associated with maintaining codebases and monitoring infrastructure across a disparate and underutilized set of chains. In the high-stakes world of DeFi, where security breaches and economic exploits can have catastrophic consequences, minimizing the attack surface is paramount.

Crucially, Kulechov also clarified that this move is not a reversal of Aave’s broader multichain expansion strategy but rather a strategic refocusing on select, high-potential protocols. He affirmed, “Aave will continue applying continuous risk assessment for all assets across all deployments.” This distinction is vital, as Aave remains committed to expanding its reach and making its lending services accessible across various blockchain ecosystems. Indeed, these comments followed closely on the heels of Aave launching on Avalanche earlier this month, demonstrating that the protocol is actively pursuing growth in environments deemed strategically important and economically viable. The expansion onto Avalanche, a well-established Layer 1 blockchain with a robust DeFi ecosystem, signals a more selective and data-driven approach to multi-chain deployment, contrasting with the more experimental approach taken with some of the chains now slated for wind-down. Furthermore, Aave continues to innovate, with developments like Aave V4 and the GHO stablecoin being brought to emerging platforms like Monad, illustrating a forward-looking strategy that balances consolidation with strategic expansion.

The decision to wind down specific markets and deprecate low-use assets reflects a broader trend within the DeFi space. As the initial boom of multi-chain expansion has matured, protocols are increasingly recognizing the challenges and costs associated with maintaining a presence on every conceivable chain. The phenomenon often dubbed “DeFi bloat” refers to the fragmentation of liquidity and resources across too many underutilized networks, leading to inefficiencies, increased security risks, and diluted user experience. Aave’s move is a clear signal that the era of indiscriminate expansion is giving way to a more disciplined and capital-efficient approach, where sustainability and concentrated liquidity are prioritized over sheer breadth of deployment. This evolution is critical for DeFi protocols to mature and offer more stable, secure, and valuable services to their users in the long run. By proactively managing its multi-chain footprint, Aave is setting a precedent for responsible growth and risk management in a rapidly evolving decentralized financial landscape.