Overview
- Aave founder Stani Kulechov announced on July 30 a formal governance proposal at the ARFC stage to deprecate 50 low‑adoption reserves, retire 21 matured Pendle principal tokens and close 25 reserves tied to six full deployments.
- The package would affect roughly $98.1 million in supplied assets and about $15.6 million in outstanding debt across affected markets while the reserves and chains remain live pending DAO votes.
- The six full‑market targets are Sonic, Scroll, zkSync, Metis, Soneium and Aptos, each of which has seen steep deposit declines and generates negligible protocol revenue often under $5,000 per quarter.
- If approved, the plan calls for orderly wind‑downs starting with freezes and cap cuts, then steep reserve‑factor hikes (up to 99% for whole‑market closures), a 5% base borrowing rate and replacement of live price feeds with fixed oracles to prompt voluntary exits.
- Next steps require community feedback, an off‑chain Snapshot and a binding on‑chain vote by the Aave DAO and the move signals a strategic shift toward concentrating engineering and risk resources on Aave V4 and higher‑use markets.