Aave DAO Rethinks Multichain Expansion Strategy - Unchained

The Aave DAO is considering a governance proposal to scale back its multichain strategy by winding down some of its lowest‑revenue deployments on certain chains.

The temp‑check proposal “Focussing the Aave V3 Multichain Strategy,” authored by ACI, calls for a complete wind-down of Aave V3 instances on zkSync, Metis, and Soneium.

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Each of these deployments generates between $3,000 to $50,000 in yearly revenue. By contrast, Aave’s largest deployment on the Ethereum mainnet brings in $142 million and represents the majority of protocol revenue.

“Over time the multichain expansion strategy has seen mixed results…it has not been the total success which it was hoped to be,” noted ACI

Also, the proposal aims to establish a “clear $2,000,000 annual revenue floor for new instance deployments.”

Moreover, it calls for increasing the reserve factor for underperforming instances like Polygon and BNB Chain that generate less than $3 million in revenue.

So far, all voting on the temperature check has been unanimously in favor of implementing the proposal