Aave is set to retire $98.1 million in supplied assets by winding down dozens of low-usage reserves and closing six blockchain markets including Sonic, Scroll, and Aptos. The protocol’s founder, Stani Kulechov, emphasized this move aims to cut economic and technical risks tied to maintaining underused assets.
The affected assets include $85.3 million in supply with $11.5 million in outstanding debt from individual reserve removals, plus $12.8 million in supply and $4.1 million in debt from entire market closures. Alongside that, 21 matured Pendle Principal Tokens are being replaced with newer versions, addressing $32.2 million of assets locked on Plasma.
These measures respond to reserves that have failed to meet Aave’s minimum activity levels or experienced significant deposit drops, leading to disproportionate operational overhead such as managing price oracles and executing liquidations. LlamaRisk, a DeFi risk monitoring firm, collaborated on recommendations to reduce this risk surface.
Some assets targeted include bridged tokens like USDC.e where native USDC exists and MaticX, which its issuer is discontinuing. By trimming reserves that no longer justify their maintenance costs, Aave hopes to streamline its platform and improve overall efficiency.
This material is informative and not financial advice.
