Aave moves to offboard 50 reserves and shut down six network deployments
Aave has put forward a governance proposal to offboard dozens of low-liquidity reserves and discontinue the protocol's deployments across six blockchain networks. The changes would affect approximately $98.1 million in supplied assets and $15.6 million in outstanding debt.
Aave founder Stani Kulechov announced the initiative, which was prepared by LlamaRisk as part of the new Aave Risk Framework. The framework introduces regular reviews of every protocol deployment.
The proposal calls for the offboarding of 50 low-activity reserves and 21 expired Pendle Principal Tokens (PTs). It also recommends winding down Aave deployments on Sonic, Scroll, zkSync, Metis, Soneium, and Aptos.
Proposed changes affect $113 million
According to the proposal, retiring individual reserves would impact $85.3 million in supplied liquidity and $11.5 million in debt. The six network deployments slated for closure account for another $12.8 million in supplied assets and $4.1 million in outstanding borrowings.
Aave said the decision was not prompted by any single incident. Instead, the review reflects its updated risk management approach, which aims to phase out reserves whose maintenance no longer justifies the cost of supporting price oracles, liquidation infrastructure, and ongoing risk monitoring.
The proposal also covers duplicate bridged assets, Pendle PT tokens that no longer generate yield, and smaller deployments whose revenue no longer offsets operating costs.
Restrictions for users
For reserves marked for offboarding, Aave plans to disable new positions and reduce both supply and borrowing limits to a single unit. The protocol also intends to increase reserve factors for borrowed assets.
Across the six networks proposed for closure, reserve factors would be raised to 99%, while base interest rates would increase to encourage users to close positions and withdraw their funds.
The reserve review follows Aave's broader overhaul of its risk management framework announced in June after the KelpDAO bridge exploit, which resulted in losses of roughly $292 million. At the time, the team said the new standards would become mandatory for adding, reviewing, and potentially removing assets across all versions of the Aave protocol.
Earlier, analysts at Standard Chartered initiated coverage of the AAVE token, forecasting its price could reach $3,500 by the end of 2030. The bank said a recovery in the DeFi sector and the expansion of tokenized real-world assets could make Aave one of the biggest beneficiaries of the next market cycle.
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