DeFi: Aave plans the largest wave of reserve removals in its history

Aave wants to remove several reserves that have become too little used. This operation would involve 98.1 million dollars of deposited assets and 15.6 million dollars of debt. For the crypto protocol, it is not about responding to an immediate emergency. The goal is rather to reduce the risks and the costs related to markets that have become unprofitable.

Aave wants to remove little-used crypto reserves

The proposal plans the removal of 50 reserves showing limited adoption. It also targets 21 Pendle Principal Tokens that have matured. This reorganization comes as Aave prepares its V4, a version designed to better separate liquidity and risk management. The affected reserves are spread across 11 Aave V3 deployments. They represent approximately 85.3 million dollars of supplied assets and 11.5 million dollars of debt.

These amounts remain modest at the scale of the crypto protocol. However, their maintenance requires several technical services. Each market notably needs a price oracle, a liquidation mechanism, and regular monitoring. When activity becomes too low, the revenues generated no longer always offset these costs. Aave therefore prefers to focus its resources on the most active reserves.

The plan goes further than a simple token removal. Aave also plans to completely close its deployments on Sonic, Scroll, zkSync, Metis, Soneium, and Aptos. These six markets include 25 additional reserves. Their removal would affect about 12.8 million dollars of assets deposited and 4.1 million dollars of debt. The crypto protocol considers that the revenues from these deployments no longer justify the costs required for their maintenance.

This decision illustrates the limits of too rapid multichain expansion. Deploying a protocol on multiple networks can attract new users. But each additional blockchain adds technical risks, liquidity needs, and operational expenses. Aave therefore is not giving up on its multichain model. The crypto protocol is rather looking to close markets that have become peripheral. This logic also applies in a context of tensions around risk management.

Progressive measures to encourage users to withdraw

Aave does not plan to immediately remove the concerned reserves. The process would be gradual. Lenders and borrowers would thus have the necessary time to close their positions. The protocol would start by blocking new deposits and new loans. The supply and borrowing limits would then be reduced to a single unit. This measure would practically prevent any new activity without abruptly disturbing existing positions.

For assets that can still be borrowed, Aave would also increase the reserve factor. A larger share of interest paid by borrowers would then go to the protocol. Maintaining these positions would gradually become less attractive. The six deployments intended for complete closure could undergo stricter measures. The reserve factor would rise to 99%, while base interest rates would increase. The goal is clear: encourage users to naturally close their positions.

This reorganization stems from the new risk framework proposed by Aave in June 2026. It was presented after the KelpDAO bridge attack, which exposed the protocol to significant bad debt risk. During this incident, stolen rsETH was deposited on Aave as collateral. The attacker then borrowed other assets against this collateral. Even though Aave was not directly responsible for the breach, the episode showed that an external asset could transmit its risk to the protocol.

The platform then underwent significant withdrawals while continuing to operate. Cointribune analyzed this liquidity crisis and the measures planned to better isolate contagion risks. The proposed removal therefore does not target only assets considered dangerous. It also concerns tokens reproducing native assets, matured Pendle products, and markets whose activity has become insufficient.