Aave to wind down V3 deployments on six blockchains due to low revenue

Aave plans to wind down its V3 deployments on Sonic, Scroll, zkSync, Metis, Soneium, and Aptos, as recommended by LlamaRisk. The proposal aims to address $4.1 million in debt while keeping existing positions open initially. The Aave Request for Final Comments (ARFC) involves 25 lending reserves with a total of 12.8 million supplied, as of July 28. The proposal highlights that Sonic, Scroll, and zkSync generate less than 5000 quarterly, while Metis, Soneium, and Aptos generate under 1000. The exit strategy includes freezing reserves, cutting supply and borrow caps to 1, and applying a 99% reserve factor with a 5% interest rate model for reserves carrying debt. This approach aims to minimize liquidation risk and encourage withdrawals. Users may face changes in rates, collateral, and oracles as the wind-down progresses, while their positions remain open during the initial freeze.

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