Aave is weighing the closure of six V3 blockchain markets after a risk assessment from LlamaRisk flagged concerns. The firm recommended winding down reserves on five networks: Sonic, Scroll, zkSync, Metis, and Aptos. Most of those actions have already been executed.
The LlamaRisk Recommendation
LlamaRisk, a risk management firm that works with DeFi protocols, published a report urging Aave to shut down reserves on several V3 deployments. The recommendation cited low usage, limited liquidity, and potential security risks. The firm argued that maintaining these markets was no longer worth the operational overhead.
Aave’s governance forum posted the analysis earlier this month. The proposal quickly gained attention from delegates who oversee the protocol’s risk parameters.
Which Markets Are Affected
The six V3 markets under review include deployments on Sonic, Scroll, zkSync, Metis, and Aptos — five networks explicitly named in the LlamaRisk report. A sixth market was also listed but not identified in the public recommendation. The affected chains are all Ethereum layer-2s or sidechains that saw limited activity after their initial launch.
Most of these markets have already seen reserve winding down begin. Aave’s risk team moved to freeze assets and disable borrowing on the affected instances. Users can still withdraw funds, but new deposits and loans are no longer possible.
Action Taken So Far
According to on-chain data, Aave has already paused lending on the Sonic, Scroll, and zkSync V3 markets. The Metis and Aptos deployments are also in the process of being wound down. The sixth market remains in limbo, with no public action yet.
The timing isn’t great for some of these chains. Scroll and zkSync have been struggling to retain users after their token airdrops. Losing Aave’s liquidity could further reduce activity on those networks.
What’s Next
The Aave DAO is now considering the proposal. A formal vote has not been scheduled, but the community is expected to discuss the remaining market. If approved, the closures would be permanent — reserves would be fully withdrawn and the markets delisted.
Aave has not set a deadline for a final decision. The protocol’s risk team will likely provide an update after the governance debate concludes.
