Aave DAO Proposes To Freeze Select Aave V3 Deployments And Introduce $2M Revenue Guarantee For Future Expansions

Decentralized autonomous organization (DAO) responsible for overseeing the Aave Protocol, one of the largest decentralized finance lending platforms, has published a new Aave Request for Comment (ARFC) entitled “Focusing the Aave V3 Multichain Strategy – Phase 1”, presenting a proposal aimed at rationalizing the current multichain deployment structure of Aave V3.

According to the proposal, the initial stage of the strategy would involve placing the existing Aave V3 deployments on zkSync, Metis, and Soneium into a frozen state. In parallel, the proposal introduces a new policy under which any future Aave V3 deployment would be required to be supported by a minimum annual revenue commitment of 2 million US dollars from the host blockchain network. 

The objective of this requirement is to improve alignment between operational costs, risk exposure, and the expected economic return associated with maintaining deployments on additional chains.

Aave V3 currently operates across a number of blockchain networks, each of which generates ongoing operational obligations, continuous monitoring needs, and governance-related workloads associated with configuration updates and asset management. 

Every additional instance also expands the overall risk profile of the protocol, even in cases where user activity remains limited. The proposal notes that, over time, it has become evident that only a small number of deployed instances account for the majority of user engagement, total value locked, and protocol revenue. 

In contrast, several deployments continue to require meaningful attention from service providers and governance participants while contributing only marginally to the broader ecosystem.

The deployments on zkSync, Metis, and Soneium are identified as examples of instances that fall into this lower-impact category. The proposal describes these markets as displaying consistently low usage levels, lacking indicators of organic growth, and offering no realistic near-term prospects of becoming material contributors to the overall Aave network. 

Maintaining these deployments in their current form is described as offering limited strategic or economic benefit while diverting operational focus and governance resources that could be allocated to higher-impact initiatives.

Aave DAO Proposes New Deployment Policy For Future Aave V3 Expansions

The proposal further emphasizes the broader value that an Aave deployment can bring to an emerging blockchain network. As one of the most established decentralized finance protocols, Aave is characterized as having a meaningful capacity to stimulate on-chain activity and contribute to ecosystem development when a deployment is properly structured and supported. 

However, the proposal also highlights that the technical, operational, and governance work required to launch and maintain a deployment, as well as the ongoing involvement of service providers, has not always been fully reflected in past expansion decisions. In light of current revenue performance across existing instances, the authors argue that deployment decisions must place greater weight on financial sustainability and risk management.

In order to address these considerations, the proposal recommends that any future Aave V3 deployment should be conditional on a guaranteed minimum annual revenue floor of 2 million US dollars, provided by the target chain. 

This measure is presented as a mechanism to ensure that new deployments generate sufficient economic returns to justify the associated time commitment, infrastructure requirements, and exposure to operational and protocol-level risks.

In its concluding section, the proposal states that the outlined measures are intended to concentrate governance and operational efforts on higher-revenue opportunities, ensure that the Aave ecosystem captures a fair share of the upside from successful deployments, reduce the number of low-impact instances over time, and secure appropriate compensation for the value delivered to partner networks. 

The changes are also expected to lower overall operational complexity and risk by gradually offboarding underperforming deployments and limiting future expansion to environments with clear and sustainable economic justification.

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