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

What happened

Aave has proposed to stop supporting six blockchain networks that currently bring only a small amount of revenue, aiming to focus on more profitable chains.

Confirmed

Global impact / market context

The move could improve Aave’s profit by cutting costs tied to low‑earning chains and redirecting resources to higher‑return platforms, which may boost its overall financial health.

Analyst inference

The proposal mirrors a wider industry pattern where DeFi projects trim underperforming assets to concentrate on higher‑yield opportunities, potentially raising competitive pressure on similar protocols.

Analyst inference

What to watch

1. Whether Aave’s governance votes approve the proposal, which would confirm the shift in resource allocation. Proposed
2. The impact on user activity and liquidity, meaning the amount of cash or assets available, on the six chains that may lose Aave support, affecting those ecosystems’ health. Analyst inference
3. How Aave reallocates capital, the money it invests, and development effort to the remaining chains, which could raise transaction volume and revenue from those platforms. Analyst inference

Affected assets

• AAVE — Aave

Evidence

• coindesk.com