TL;DR: Aave to potentially abandon 6 blockchains due to low revenue and low adoption.
The Details
Aave, the largest decentralized lending protocol, is considering a proposal to abandon six blockchains that generate less than $5,000 a quarter. The proposal is based on economics, citing the high cost of maintaining these deployments. The six blockchains in question are Sonic, Scroll, zkSync, Metis, Soneium, and Aptos. The move could affect $98 million in deposits. Aave’s Ethereum mainnet deployment generates significantly more revenue than these blockchains.
Watch For
- Monitor Aave’s token price (AAVE) for potential volatility.
- Keep an eye on the adoption and revenue of other blockchains, as this may impact their own growth.
- The potential for other DeFi protocols to follow Aave’s lead and abandon underperforming blockchains.
Analyzed by FNXT Experts