Aave's 6-Chain Exit: $98M Deposits and Shrinking Revenues

Aave, the largest decentralized lending protocol, is set to abandon six underperforming chains holding just $13 million in deposits out of its $14 billion total across 23 chains. Metis, Soneium, and Aptos generate less than $1,000 per quarter, while Ethereum mainnet earns $142 million annually and Base $4.7 million. Deposits across the six chains dropped by 74% to 95% over six months. Aave will freeze existing positions but limit new deposits, borrowing, and collateral use. Borrowers paid $888 million in interest last year, with Aave retaining only $117 million. Quarterly gross revenue fell from $198 million to $156 million, with liquidation fees dropping sharply. Each of the six chains generates less than $5,000 per quarter, making Metis' revenue equivalent to a dinner's cost.

The move reflects Aave's strategic pivot, as the December 2023 Aave Chan Initiative deemed zkSync, Metis, and Soneium 'unfit' and mandated future deployments commit to at least $2 million in annual revenue.