Aave Founder Says Asset Wind-Downs Driven By Risk Reduction, Not Layer 1 Or Layer 2 Strategy Shift

by
Alisa Davidson

Revealed: July 30, 2026 at 10:30 am Up to date: July 30, 2026 at 10:18 am

by Anastasiia O

Edited and fact-checked:
July 30, 2026 at 10:30 am

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Aave founder Stani Kulechov has clarified that the protocol’s current choice to decommission dozens of low-adoption property and 6 blockchain deployments is strictly a risk-management train and shouldn’t be interpreted as an announcement on the viability of any Layer 1 or Layer 2 community. 

In a submit on social media platform X, he defined that the objective is to shrink Aave’s operational, technical, and financial threat floor so the decentralised lending protocol can focus on higher-impact priorities, together with rising present high-value markets and increasing into securities finance.

The proposal, ready by threat service supplier LlamaRisk, recommends offboarding 50 low-adoption reserves and 21 matured Pendle Principal Tokens throughout 11 Aave V3 deployments. It additionally requires the complete wind-down of six smaller deployments—Sonic, Scroll, zkSync, Metis, Soneium, and Aptos—which collectively cowl an extra 25 reserves. In whole, the initiative would have an effect on roughly $98.1 million in equipped property and $15.6 million in excellent debt. 

Stani Kulechov emphasised that Layer 2 networks stay crucial to Ethereum’s consumer expertise, citing Aave App’s Steady Vaults, which use a Layer 2 as an accounting layer to onboard mainstream customers into decentralised finance. He additionally famous that networks similar to Avalanche play an necessary position in bringing RWAs on-chain via institutional channels.

Governance Overhaul Follows KelpDAO Exploit

The reserve assessment is the primary main train beneath Aave’s newly proposed Threat Framework, which was launched in June following the roughly $292 million KelpDAO bridge exploit. That incident uncovered the protocol to potential unhealthy debt after stolen rsETH was deposited as collateral, prompting a shift from reactive threat administration to a standardised, portfolio-wide strategy. Beneath the brand new framework, property and deployments that not justify the overhead of sustaining worth oracles, liquidation infrastructure, and steady monitoring are flagged for removing.

For affected reserves, Aave plans to freeze new deposits and borrows, scale back provide and borrow caps to 1 unit, and lift reserve components on borrowable property. Deployments slated for full retirement would see reserve components elevated to 99% and base rates of interest hiked to encourage customers to unwind positions. A companion proposal from LlamaRisk additionally targets long-tail reserves with elevated Chainlink price-feed threat, proposing to exchange dwell feeds with fixed-price adapters. 

Alisa, a devoted journalist on the MPost, focuses on crypto, AI, investments, and the expansive realm of Web3. With a eager eye for rising developments and applied sciences, she delivers complete protection to tell and have interaction readers within the ever-evolving panorama of digital finance.

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