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Aave’s delegate platform proposes pausing three layer‑2 deployments due to low revenue.

Aave Delegate Platform Calls for Pause on Three Layer‑2 Deployments Over Weak Revenue Performance

February 5, 2026 – DeFi Pulse

A governance delegation body representing Aave, the leading decentralized lending protocol with more than $29 billion locked across its contracts, has submitted a formal request to halt the operation of three under‑performing Aave V3 instances on Ethereum Layer‑2 (L2) networks. The motion, put forward by the Aave Chan Initiative (ACI), seeks to suspend deployments on zkSync Era, Metis and Soneium until they can demonstrate a sustainable revenue stream.

The proposal

On Jan. 29 the ACI filed a governance proposal that moved to a Snapshot vote on Feb. 3. The core of the submission is two‑fold:

  1. Immediate pause of the three targeted L2 deployments to curb ongoing operational and governance costs.
  2. Future‑deployment safeguard requiring any new chain addition to guarantee a minimum of $2 million in annual revenue for Aave.

The ACI argues that a handful of instances are “providing negligible user activity, TVL and fee generation while still demanding non‑trivial monitoring and support,” and that their removal would lessen the protocol’s overhead.

Current performance snapshot

According to data aggregated from DefiLlama, the three L2s collectively hold roughly $58 million in TVL—$26 million on zkSync Era, $21.6 million on Soneium and $11.7 million on Metis. However, the fee revenue generated over the last 30 days is starkly disproportionate:

Network 30‑day fee revenue
zkSync Era $714
Metis $679
Soneium $150
Ethereum (mainnet) $7.7 million
Base (L2) $298 k

These figures illustrate that despite modest TVL, the three L2s contribute less than 0.05 % of Aave’s total recent fee income.

Governance response

The Snapshot poll, which runs until Feb. 7, has so far recorded unanimous support: 257,300 votes in favour and none against. The overwhelming backing suggests that both delegators and token holders share concerns about the cost‑benefit balance of maintaining low‑yielding L2 deployments.

Wider context

The timing of the vote coincides with renewed debate over Ethereum’s scaling roadmap. Earlier this week, Ethereum co‑founder Vitalik Buterin posted on X that the network’s “rollup‑centric vision no longer makes sense,” urging the community to explore alternative use cases for L2s. The ACI’s proposal can be viewed as a concrete response to that strategic uncertainty, refocusing Aave’s multichain expansion on routes with clearer economic justification.

Analyst outlook

  • Cost efficiency: By trimming deployments that barely cover their operational expenses, Aave can allocate developer and governance resources toward higher‑yielding chains, potentially accelerating growth on ecosystems like Base or Arbitrum where fee capture is already stronger.
  • Barrier to entry: The $2 million annual‑revenue floor will raise the bar for future L2 integrations, discouraging speculative or experimental rollups that lack a proven user base. Projects that cannot meet the threshold may need to partner with Aave for incentive programs or adopt alternative revenue models.
  • Risk of over‑concentration: Concentrating activity on a limited set of L2s could heighten exposure to network‑specific risks (e.g., congestion, regulatory scrutiny). A balanced portfolio that includes emerging chains with growth potential might still be valuable, provided they can meet performance benchmarks.
  • Signal to the market: Aave’s decisive stance may prompt other multichain protocols to revisit their own L2 strategies, potentially leading to a broader industry shift toward revenue‑driven expansion criteria.

Key takeaways

  • Aave’s governance delegation (ACI) has proposed pausing Aave V3 on zkSync Era, Metis and Soneium due to minimal fee revenue.
  • The three L2s together hold ~ $58 million in TVL but generated under $2 k in fees over the past month, compared with millions on Ethereum mainnet.
  • Future chain additions would need to demonstrate at least $2 million in projected annual revenue to gain approval.
  • The Snapshot vote is currently unanimous (257.3 k votes for, zero against) and will close on Feb. 7.
  • The move aligns with broader industry discussions questioning the roll‑up‑centric scaling model for Ethereum.

If the proposal passes, Aave will likely reallocate development and governance bandwidth to higher‑yielding environments, while setting a clear economic threshold for any subsequent multichain expansion. The outcome will be a bellwether for how DeFi protocols balance decentralization ambitions with fiscal prudence in an increasingly competitive L2 landscape.



Source: https://thedefiant.io/news/defi/aci-proposes-pausing-three-layer-2-deployments-citing-weak-revenue

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