Aave will close 6 V3 markets and remove 50 low-utilization reserves

Aave governance proposal to shut down V3 markets on six chains and remove a large number of low-utilization tokens

A proposed Aave governance plan aims to shut down multiple Aave V3 lending markets deployed on six blockchains while removing a large number of low-utilization tokens. The plan is advanced through the ARFC process within the agreement. Based on balance data recorded on July 28, the target cleanup scope covers approximately US$98.1 million in supply assets and US$15.6 million in outstanding debt.

According to LlamaRisk, which completed the evaluation with Aave service provider, the proposal recommends removing 50 low-utilization reserves from the market and retiring 21 expired Pendle principal tokens in 11 deployments. In addition, the proposal also calls for all 25 reserves on Sonic, Scroll, zkSync, Metis, Soneium and Aptos to be retired.

Core Points

The ARFC will abolish the Aave V3 markets on Sonic, Scroll, zkSync, Metis, Soneium and Aptos, while removing 50 low-utilization reserves and 21 expired Pendle principal tokens. The scope of the cleanup is based on the on-chain balance recorded on July 28, involving $98.1 million in supply assets and $15.6 million in liabilities. Risk services provider LlamaRisk described the action as part of Aave's broader risk governance framework rather than a reversal of its multi-chain growth strategy. Previous multi-chain "interim voting" has shut down underperforming instances on zkSync, Metis and Soneium and set an annual revenue threshold of $2 million for new deployments.

Response from Aave founder Stani Kulechov

Aave founder Stani Kulechov said the move aims to reduce economic and technological exposure based on the updated listing and risk framework.

How ARFC will change Aave V3

ARFC (Aave Request for Comment) is a detailed governance proposal and a precursor to the Aave Improvement Proposal (AIP). It does not in itself mean that on-chain voting has been completed or execution is in progress. The focus of this proposal is to reduce exposure to markets with low utilization or expired positions. LlamaRisk has worked with other Aave service providers to develop multiple categories for removal: low-utilization reserves, some expired Pendle principal tokens, and the retirement of all reserves on six chains.

Aptos 'exit stems from a rapid decline in liquidity

Aptos' inclusion in the cleanup is of concern because of its relatively short deployment time. According to LlamaRisk, Aave launched the V3 market on Aptos about 11 months ago. During this period, liquidity fell 94% in six months, and quarterly revenue fell below $1000, according to LlamaRisk. According to the proposal, different chains are handled differently. LlamaRisk pointed out that all reserves on Scroll, zkSync, Metis and Soneium had previously been frozen. In contrast, Sonic and Aptos are still active at the time of the snapshot, and ARFC recommends freezing them as well. This structure is critical to the speed at which removal measures translate into actual risk reduction-a freeze has been able to deter new activity, and full decommissioning will further reduce Aave's scope of operations in these deployments.

How did the previous "provisional vote" lay the foundation

This is not the first time that ARFC has issued a governance signal that it is willing to scale down some poorly performing V3 instances on the chain. According to governance records cited in the source materials, the previous "provisional vote" on Aave's multi-chain strategy ended on December 5, 2025. The voting results showed that 923,400 votes were in favor and less than 1%, agreeing to change the reserve treatment of poor performance cases. The results of that governance included action against zkSync, Metis, and Soneium-specifically shutting down instances-and setting a $2 million annual revenue threshold for new instance deployments. In other words, the latest ARFC is more like a follow-up to standards that the community has accepted than a sudden turn.

Risk framework update and cleanup logic for agreement scope

The proposal is consistent with Aave's evolving risk and listing governance system. Source materials pointed out that Aave included Scroll in the affected scope through an accelerated process in April and directly submitted the AIP proposal. In the description, the measure was intended to complete the removal of Scroll due to the rapid deterioration of network liquidity and Aave market activity. In addition, Aave released an updated risk framework on June 9, covering asset, bridging, monitoring and chain risks, as well as criteria for shutting down reserves or deployments. The current ARFC announcement indicates that these rules have been "de facto" adopted for this cleanup. Aave founder Stani Kulechov also talked about the matter in a social media post on Thursday. He said the move would "reduce Aave's economic and technical risk exposure as part of the new Aave risk framework and technology asset listing framework." He further emphasized that the action "is not a reversal of the protocol's multi-chain expansion strategy" and that Aave will continue to conduct ongoing risk assessments across all deployments. This distinction may be crucial for market participants: Aave's multi-chain strategy still seems to be intact conceptually, but the governance direction points to stricter enforcement of performance and risk thresholds-essentially focusing capital and attention on meeting conditions for deployments and exiting those that do not meet the standards.

Significance for Users and Market Participants

For users and liquidity providers, removal measures may change the path of capital flows: as reserves are frozen or retired, liquidity may be further reduced, and markets associated with low-utilization reserves may become inaccessible over time. For borrowers and lenders, shutting down the V3 market may also affect the ease of position adjustments, especially when tokens associated with specific asset or principal tokens are retired after maturity. The bigger signal for investors and governance observers is how Aave puts its framework into practice. By linking removal to measurable liquidity and revenue results, and citing temporary voting that previously set revenue thresholds, the ARFC highlights a governance style that is increasingly rules-driven rather than ad hoc decision-making. Readers should pay attention to the next procedural steps: whether the ARFC will enter the Aave improvement proposal for a formal vote, and how the multiple chain executions involved will be sorted-especially since Sonic and Aptos were still active at the time of the July 28 snapshot.