Close Menu
  • Coins
    • Bitcoin
    • Ethereum
    • Altcoins
    • NFT
  • Blockchain
  • DeFi
  • Metaverse
  • Regulation
  • Other
    • Exchanges
    • ICO
    • GameFi
    • Mining
    • Legal
  • MarketCap
What's Hot

Arkham Says It Tracks 78% of Strategy’s 847,666 Bitcoin Holdings

13/10/2026

Coinbase-Backed Aave V4 Users Increase Stock Positions Each

13/10/2026

Solana Founder Links Elon Musk and Altman’s AI Slowdown to ‘Profitability at $1 Trillion Market Cap’

13/10/2026
Facebook X (Twitter) Instagram
  • Back to NBTC homepage
  • Privacy Policy
  • Contact
X (Twitter) Telegram Facebook LinkedIn RSS
NBTC News
  • Coins
    1. Bitcoin
    2. Ethereum
    3. Altcoins
    4. NFT
    5. View All

    Arkham Says It Tracks 78% of Strategy’s 847,666 Bitcoin Holdings

    13/10/2026

    Bitfinex Lists 17 Macro Catalysts That Could Move Bitcoin in October

    13/10/2026

    The Biggest Exit Came from Fidelity! Here Are the Details

    13/10/2026

    Bitcoin Price Enters October Near $85K—Now $95K Is Back in Play

    13/10/2026

    Decoding Ethereum’s stalled rebound as Bitfinex longs defy $542M ETF outflows

    12/10/2026

    Ethereum wallets move $11M to Kraken: Is a sell-off coming?

    12/10/2026

    Ethereum’s RWA Market Cap Grows by $553.1M in Just 7 Days

    12/10/2026

    Ethereum (ETH) Bloodbath: Largest Whales Get Liquidated

    11/10/2026

    Algorand CSMO Outlines Progress and Innovations

    13/10/2026

    SingularityNET CEO to Speak at a16z’s Tech Week Event

    13/10/2026

    Grayscale Research Says NEAR Protocol is Leading Agentic

    13/10/2026

    OUSD Stablecoin Goes Live on Solana, Backed by $18M Reserves

    13/10/2026

    Pudgy Penguins gets support as billionaire buys 117 NFTs

    12/10/2026

    NFT sales rise to $39.85m as Pudgy Penguins jump 125%

    10/10/2026

    Flying Tulip’s NFT Options Market Tops $5 Million in Volume, Cronje Says

    06/10/2026

    NFT sales fall 23% to $40.9m as Panini jumps 557%

    03/10/2026

    Arkham Says It Tracks 78% of Strategy’s 847,666 Bitcoin Holdings

    13/10/2026

    Coinbase-Backed Aave V4 Users Increase Stock Positions Each

    13/10/2026

    Solana Founder Links Elon Musk and Altman’s AI Slowdown to ‘Profitability at $1 Trillion Market Cap’

    13/10/2026

    Algorand CSMO Outlines Progress and Innovations

    13/10/2026
  • Blockchain

    Step-by-Step Guide to Joining the MemeToro $MT Presale

    13/10/2026

    Cardano Founder Accuses Ethereum Co-Founder Of ‘Bag-Holding’ Over AI Cryptography Warning

    12/10/2026

    XRP Ledger Might Be Vulnerable to AI, Avalanche Founder Warns

    12/10/2026

    Circle’s Tokenized Market Cap on BNB Chain Grows by $27.9M

    12/10/2026

    CircuitAI Launches Cross-Chain Swaps and Confidential Intents

    12/10/2026
  • DeFi

    Coinbase-Backed Aave V4 Users Increase Stock Positions Each

    13/10/2026

    Uniswap Gains Attention as DeFi Venues Expand Trading Options

    13/10/2026

    Some Aave loans sit near liquidation with collateral that can take hours to cash out

    12/10/2026

    Aave’s USDG rollover plan has a yield below most quoted borrowing rates

    12/10/2026

    Significant $500M Drop in DeFi Perpetual Open Interest

    10/10/2026
  • Metaverse

    Is Solana Gaming Back? Kintara Activity Fuels Renewed Optimism in Onchain MMOs

    24/06/2026

    The Sandbox launches AI game engine ‘The Sandbox Studio’ for next-generation creators

    10/06/2026

    Meta commits $13M in funding for Oversight Board through 2028

    29/05/2026

    Why Animoca’s Yat Siu says the future is 100 billion AI agents

    07/05/2026

    ‘8,000 Jobs’—Polymarket Sees Tech Layoff Surge As Meta AI Push Bites

    18/04/2026
  • Regulation

    Solana Founder Links Elon Musk and Altman’s AI Slowdown to ‘Profitability at $1 Trillion Market Cap’

    13/10/2026

    AMC CEO challenges Robinhood’s 1:1 token backing

    13/10/2026

    Home Sellers Outnumber Buyers by 58% With Listings at Six-Year High

    13/10/2026

    Why Bitcoin and Tech Stocks Are Feeling the Heat

    13/10/2026

    Tokenized Equity Holders on Solana Cross 800K

    13/10/2026
  • Other
    1. Exchanges
    2. ICO
    3. GameFi
    4. Mining
    5. Legal
    6. View All

    Can AI Utility and Exchange Listings Support $MT After Launch?

    12/10/2026

    Three Audits Approve Its Contracts As Open-Source AI Validation Support Its Stage 7 Progress

    12/10/2026

    What to Check Before Leaving an Exchange

    12/10/2026

    Citibank’s Coinbase stablecoin payments let institutional clients skip crypto setup

    11/10/2026

    ICO market slows sharply with only six completions in 2026

    30/04/2026

    South Korea Poised to Lift Ban on Domestic ICOs After 7 Years

    19/12/2025

    Why 2025’s Token Boom Looks Both Familiar and Dangerous

    31/10/2025

    ICO for bitcoin yield farming chain Corn screams we’re so back

    22/01/2025

    Top 12 NFT games every player should know about in August 2026

    19/08/2026

    GameShame Studios founder details Raijin Protocol’s roadmap in NeoPod’s sixth AMA

    13/08/2026

    How BC.GAME is turning players into stakeholders

    04/08/2026

    YGG Play Shuts Down Services as Yield Guild Pivots to AI Data

    01/08/2026

    IREN’s unconfirmed Anthropic deal tests miners’ AI cloud pivot

    13/10/2026

    Bitcoin miners face widening AI financing costs as lenders scrutinize deals

    13/10/2026

    Bitcoin miners face uneven borrowing costs for AI expansion

    12/10/2026

    SWI raises $894 million to repurpose former FTX bitcoin miner Genesis Digital to AI

    12/10/2026

    Crypto’s heavy backing of Republicans alienated Democrats: Cuomo

    12/10/2026

    HMRC’s Proposed Crypto Powers Could Increase Physical Security Risks

    12/10/2026

    Thai SEC backs crypto ETFs with rules to protect Thai investors

    12/10/2026

    The CLARITY Act stalled. Crypto’s election money faces a Senate test

    12/10/2026

    Arkham Says It Tracks 78% of Strategy’s 847,666 Bitcoin Holdings

    13/10/2026

    Coinbase-Backed Aave V4 Users Increase Stock Positions Each

    13/10/2026

    Solana Founder Links Elon Musk and Altman’s AI Slowdown to ‘Profitability at $1 Trillion Market Cap’

    13/10/2026

    Algorand CSMO Outlines Progress and Innovations

    13/10/2026
  • MarketCap
NBTC News
Home»DeFi»Why DeFi giant Aave is pulling the plug on six hyped blockchains making less than $5,000 a quarter
DeFi

Why DeFi giant Aave is pulling the plug on six hyped blockchains making less than $5,000 a quarter

NBTCBy NBTC01/08/2026No Comments3 Mins Read
Share
Facebook Twitter LinkedIn Pinterest Email


In a July 29 forum-stage proposal, Aave risk service provider LlamaRisk recommended winding down the decentralized lender’s V3 deployments on Sonic, Scroll, zkSync, Metis, Soneium, and Aptos. The plan would put $4.1 million of debt on a staged exit path that keeps existing positions open during the initial step.

The Aave Request for Final Comments, or ARFC, covers 25 lending reserves with $12.8 million supplied, based on LlamaRisk data dated July 28. The forum thread still showed the request under discussion on July 31. Aave’s proposal lifecycle places an ARFC before a community Snapshot and any executable on-chain Aave Improvement Proposal.

LlamaRisk’s economic case rests on support costs exceeding revenue. It said Sonic, Scroll, and zkSync each generate less than $5,000 in quarterly protocol revenue at current balances, while Metis, Soneium, and Aptos each generate less than $1,000. The proposal cites oracle, monitoring, and operational support costs but does not quantify the shortfall.

The same ARFC separately targets 50 individual reserves and 21 matured Pendle principal tokens across 11 deployments, with $85.3 million supplied and $11.5 million borrowed. Those balances sit outside the six-market totals.

How the six-market exit would work

For the six full-market exits, every reserve would be frozen and its supply and borrow caps cut to 1. Reserves carrying debt would receive a 99% reserve factor and a 5% interest rate model base variable rate; unborrowed reserves would not receive those two changes.

The two settings act on different sides of the market. The 5% figure is the base-rate component applied to borrowing. The 99% reserve factor determines how interest revenue is divided, directing nearly all interest paid by borrowers to the Aave treasury and leaving little for supplier yield. LlamaRisk expects lower yield to encourage withdrawals, which raises utilization and gives borrowers a stronger incentive to repay.

A freeze stops new supply, new borrowing, and use as fresh collateral. Positions already open would remain open, and the proposal says any additional unwind would be considered case by case. The starting point also varies: every listed Sonic and Aptos reserve was active in the July 28 tables, while every listed reserve on Scroll, zkSync, Metis, and Soneium was already frozen.

What users could face next

The staged approach is designed to minimize immediate liquidation risk while preserving stronger levers if balances remain. LlamaRisk said later steps could raise interest rate curves or gradually reduce liquidation thresholds for selected collateral. After positions unwind further, deployment oracles could be replaced with fixed-price adapters under the method described in a companion oracle proposal.

Users remaining after the first step would therefore face possible rate, collateral, and oracle changes as the wind-down progresses, while the initial freeze itself leaves their positions open.

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
NBTC

NBTC is the editorial account for NBTC News, covering Bitcoin, Ethereum, DeFi, blockchain infrastructure, exchanges, mining, regulation and digital asset markets. The editorial team focuses on clear sourcing, timely updates and practical context for crypto readers.

Related Posts

Coinbase-Backed Aave V4 Users Increase Stock Positions Each

13/10/2026

Uniswap Gains Attention as DeFi Venues Expand Trading Options

13/10/2026

Some Aave loans sit near liquidation with collateral that can take hours to cash out

12/10/2026

Aave’s USDG rollover plan has a yield below most quoted borrowing rates

12/10/2026
Add A Comment

Comments are closed.

Top Posts
Get Informed

Subscribe to Updates

Get the latest news from NBTC regarding crypto, blockchains and web3 related topics.

Your source for the serious news. This website is crafted specifically to for crazy and hot cryptonews. Visit our main page for more tons of news.

We're social. Connect with us:

Facebook X (Twitter) LinkedIn RSS
Top Insights

Arkham Says It Tracks 78% of Strategy’s 847,666 Bitcoin Holdings

13/10/2026

Coinbase-Backed Aave V4 Users Increase Stock Positions Each

13/10/2026

Solana Founder Links Elon Musk and Altman’s AI Slowdown to ‘Profitability at $1 Trillion Market Cap’

13/10/2026
Get Informed

Subscribe to Updates

Get the latest news from NBTC regarding crypto, blockchains and web3 related topics.

Type above and press Enter to search. Press Esc to cancel.