Hey folks, if you're knee-deep in DeFi like I am, you've probably heard the buzz around Aave's latest governance moves. The Aave DAO just dropped a "Temp Check" proposal that's shaking up their multichain game for Aave V3. It's all about sharpening focus, cutting the fat, and making sure every chain they touch actually pulls its weight in revenue. Let's break it down in plain English—no jargon overload, promise.
What's This Temp Check All About?
Picture this: Aave, the powerhouse lending protocol that's been a DeFi staple since 2017, is spreading its wings across multiple blockchains to reach more users and liquidity. But not all chains are created equal. Some are thriving, others... not so much. This Temp Check, proposed by community member ACI, is a temperature gauge for the DAO to vote on tweaks to their multichain rollout strategy.
The core idea? Stop throwing resources at underperformers and double down on what works. It's a pragmatic pivot in a bearish market where efficiency isn't just nice—it's survival.
The Big Changes on the Table
The proposal lays out three key pillars to revamp Aave V3's multichain approach:
Crank Up the Reserve Factor on Laggards
For chains that aren't hitting revenue targets, they'd hike the "Reserve Factor." Quick explainer: This is basically a fee skimmed off interest payments that goes straight to Aave's treasury. Bumping it up on weak performers means more cash flow without alienating users on strong networks. Smart way to squeeze value from what's already there.Sunset zkSync, Metis, and Soneium Instances
Oof, this one's bold. The proposal calls for winding down deployments on zkSync, Metis, and Soneium. Why? These Layer 2 and sidechain instances just aren't generating enough action—think low TVL (total value locked) and minimal borrowing/lending volume. Shutting them saves dev time, gas fees, and upkeep costs. It's a clear signal: If you're not contributing meaningfully, you're out.$2M Annual Revenue Floor for New Rollouts
No more half-measures for future chains. Any new instance must commit to at least $2 million in annual revenue potential. This isn't arbitrary—it's based on data from existing setups. It ensures expansions align with Aave's growth goals and protects against dilution of their brand across too many mediocre markets.
The full doc, shared in the Aave DAO forum, dives into the numbers, but the gist is efficiency first.
Why Now? The Multichain Meta Shift
DeFi's multichain era promised interoperability heaven, but it's turned into a fragmented mess for protocols like Aave. With Ethereum L1 and top L2s like Base and Arbitrum dominating liquidity, niche chains are struggling. This Temp Check rides the wave of the "revenue meta"—where DAOs prioritize profitability over expansion for expansion's sake. As one X commenter put it, "Multichain survival of the fittest lmao."
It's reminiscent of how Uniswap and others have consolidated lately. In a world of high gas wars and user fatigue, focusing firepower on high-yield chains could boost Aave's TVL and token value. Plus, with AAVE holders voting soon, this could set a precedent for other protocols chasing similar optimizations.
What Happens Next?
This is just a Temp Check, so it's non-binding—think of it as a vibe check for the community. If it passes muster, expect a full on-chain vote. Eyes on the Aave governance snapshot for updates. Will the DAO greenlight the shutdowns? Or push back for more second chances?
As someone who's covered DeFi governance from the CoinDesk days to now at Meme Insider (yeah, we do memes, but we geek out on protocol deep dives too), I see this as Aave staying ahead of the curve. It's ruthless, but in blockchain, that's often the path to longevity.
What do you think—too aggressive, or just what DeFi needs? Drop your takes in the comments. And if you're hunting meme token angles in this (hello, governance memecoins?), keep an eye on Aave-related pumps.
Stay savvy,
Your Meme Insider DeFi Whisperer