In a July 29 forum-stage proposal, Aave danger service supplier LlamaRisk really useful 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 retains present positions open throughout the preliminary step.
The Aave Request for Remaining Feedback, or ARFC, covers 25 lending reserves with $12.8 million provided, primarily based on LlamaRisk information dated July 28. The discussion board thread nonetheless confirmed the request beneath dialogue on July 31. Aave’s proposal lifecycle locations an ARFC earlier than a neighborhood Snapshot and any executable on-chain Aave Enchancment Proposal.
LlamaRisk’s financial case rests on assist prices exceeding income. It stated Sonic, Scroll, and zkSync every generate lower than $5,000 in quarterly protocol income at present balances, whereas Metis, Soneium, and Aptos every generate lower than $1,000. The proposal cites oracle, monitoring, and operational assist prices however doesn’t quantify the shortfall.
The identical ARFC individually targets 50 particular person reserves and 21 matured Pendle principal tokens throughout 11 deployments, with $85.3 million provided and $11.5 million borrowed. These balances sit exterior the six-market totals.
How the six-market exit would work
For the six full-market exits, each reserve can be frozen and its provide and borrow caps minimize to 1. Reserves carrying debt would obtain a 99% reserve issue and a 5% rate of interest mannequin base variable charge; unborrowed reserves wouldn’t obtain these two modifications.
The 2 settings act on totally different sides of the market. The 5% determine is the base-rate element utilized to borrowing. The 99% reserve issue determines how curiosity income is split, directing almost all curiosity paid by debtors to the Aave treasury and leaving little for provider yield. LlamaRisk expects decrease yield to encourage withdrawals, which raises utilization and offers debtors a stronger incentive to repay.
A freeze stops new provide, new borrowing, and use as recent collateral. Positions already open would stay open, and the proposal says any extra unwind can be thought of case by case. The start line additionally varies: each listed Sonic and Aptos reserve was lively within the July 28 tables, whereas each listed reserve on Scroll, zkSync, Metis, and Soneium was already frozen.
What customers might face subsequent
The staged strategy is designed to attenuate instant liquidation danger whereas preserving stronger levers if balances stay. LlamaRisk stated later steps might increase rate of interest curves or progressively cut back liquidation thresholds for chosen collateral. After positions unwind additional, deployment oracles might be changed with fixed-price adapters beneath the strategy described in a companion oracle proposal.
Customers remaining after step one would due to this fact face potential charge, collateral, and oracle modifications because the wind-down progresses, whereas the preliminary freeze itself leaves their positions open.
