Aave proposes exiting six blockchains to cut underperforming markets
DeFi lending giant Aave proposed shutting down its protocol deployments across six blockchains, including Aptos, zkSync, and Scroll, due to underperforming revenue. The affected chains generate less than $5,000 quarterly each, accounting for less than 1% of Aave's $14 billion total value locked. Aave plans to freeze these low-adoption markets and raise borrowing rates to incentivize users to voluntarily unwind $98 million in deposits, prioritizing cost reduction and risk management.
Key takeaways
- 1Aave proposed closing deployments on Sonic, Scroll, zkSync, Metis, Soneium, and Aptos.
- 2The six target chains generate under $5,000 each in quarterly revenue for the protocol.
- 3Aave will freeze new activity and boost borrowing rates to prompt voluntary user withdrawals.
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Why it matters
DeFi protocols are shifting from aggressive multi-chain expansion toward capital efficiency and profitability. Retail liquidity on niche networks may dry up as major blue-chip protocols consolidate operations back to high-volume ecosystems like Ethereum and Base.
Discussion
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