CoinDesk·3 min read·hard

The economics behind Aave proposal to ditch 6 chains that earn loose change in revenue

S
Shaurya Malwa
The economics behind Aave proposal to ditch 6 chains that earn loose change in revenue
AI Summary

The Aave decentralized finance protocol is proposing to discontinue support for six blockchain networks that generate negligible revenue. The proposal cites high maintenance costs and declining liquidity as the primary reasons for the move.

The arguments is based on economics. Each of the six deployments now generate less than $5,000 a quarter. Metis, Soneium and Aptos bring in under $1,000 each, according to the proposal. That does not cover the cost of running them, which includes maintaining price feeds, liquidation systems and monitoring for each market.

Continue reading on Headlinne

Create a free account to read the full article.

Read full article →
technologybusinesscrypto

Get the full story

Sign up for Headlinne to unlock AI insights, political bias analysis, and your personalized news feed.

Create free account

Already have an account? Sign in