Article may be outdated

This article is 62 days old. Some details may have changed since publication.

CoinDesk·3 min read·hard

The economics behind Aave proposal to ditch 6 chains that earn loose change in revenue

S
Shaurya Malwa
The economics behind Aave proposal to ditch 6 chains that earn loose change in revenue
✦AI Summary

The Aave decentralized finance protocol is proposing to discontinue support for six blockchain networks that generate negligible revenue. The proposal cites high maintenance costs and declining liquidity as the primary reasons for the move.

Why it matters

This reflects a broader trend in the crypto industry where protocols are prioritizing profitability and operational efficiency over broad multi-chain expansion.

✦Dive DeeperCreate a free account to unlock

The arguments is based on economics. Each of the six deployments now generate less than $5,000 a quarter. Metis, Soneium and Aptos bring in under $1,000 each, according to the proposal. That does not cover the cost of running them, which includes maintaining price feeds, liquidation systems and monitoring for each market.

For context, Aave’s Ethereum mainnet deployment generates more than $142 million a year and Base about $4.7 million, while Metis produces roughly $3,000.

Deposits have collapsed across all six over six months. Soneium fell 95%, available liquidity on Aptos dropped 94%, zkSync declined 88% to about $844,000, Scroll fell 86% to roughly $2 million, Metis dropped 79%, and Sonic, the largest of the group, fell 74% to just under $8 million.

The six hold a cominbed $13 million in deposits against Aave’s roughly $14 billion across 23 chains, DefiLlama data shows, or under 1% of the protocol’s assets.

Continue reading on Headlinne

Create a free account to read the full article.

Read full article →
technologybusinesscrypto
✦

Get smarter about the news

Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.

Create free account

Already have an account? Sign in