Aave has officially expanded to Mantle Network in a new partnership designed to bring institutional-grade lending liquidity to the fast-growing Layer-2 ecosystem.
However, while Aave moves forward on one front, fresh governance documents reveal the DAO is simultaneously preparing for a significant consolidation — including shutting down deployments on some chains and imposing stricter revenue requirements for all future expansions.
Aave goes live on Mantle to accelerate institutional liquidity
The partnership, announced today, 2 December, positions Aave V3 as a core liquidity engine across Mantle’s Layer-2 environment. The rollout includes support for blue-chip assets such as ETH, USDC, and USDT, with additional pairs expected in later phases.
Mantle described the integration as a way to “bring institutional-grade DeFi liquidity on-chain at global scale,” with the deployment aimed at strengthening lending markets and onboarding large-scale capital allocators.
The expansion follows Mantle’s growing footprint in L2 user activity, TVL growth, and its broader push to attract enterprise and fund-driven liquidity flows.
The integration enables Mantle users to borrow, lend, and leverage assets through Aave’s flagship V3 engine — offering risk-segmented liquidity pools, isolation mode, and cross-chain functionality via portals.
In practice, Mantle now gains access to one of DeFi’s most battle-tested money markets, while Aave deepens its presence across high-performing L2s.
But internally, Aave is preparing a major multichain reset
A new Temp Check posted on Aave’s governance forum reveals a more complex picture behind the expansion narrative.
According to the proposal, Aave’s multichain strategy has “not been the total success which it was hoped to be,” with several deployments failing to generate meaningful revenue or user traction.
The DAO is now considering a sweeping strategic shift:
1. Shutting down three Aave V3 deployments entirely
These chains are producing just $3,000–$50,000 in annualized revenue — far below the operational costs and engineering overhead required to maintain them.
2. Increasing the Reserve Factor on underperforming chains
Chains generating under $3M annualized revenue — including Polygon, Gnosis, BNB Chain, Optimism, Scroll, Sonic, and Celo — will face higher Reserve Factors to improve profitability.
If revenue does not materially improve within 12 months, these instances may also face offboarding.
3. Requiring a $2 million annual revenue floor for all new deployments
For the first time, Aave is signaling that its network presence carries tangible economic value. Any new chain wanting an Aave V3 deployment must now guarantee $2M per year in revenue.
This rule would dramatically reshape the dynamics of DeFi expansion, placing financial obligations on chains rather than relying solely on TVL or user incentives.
A tale of two strategies: expansion and consolidation
Despite launching on Mantle, the DAO’s own numbers show most of Aave’s revenue comes from just a handful of chains:
- Ethereum: $142M annualized [81.6%]
- Plasma, Base, Arbitrum, Avalanche: meaningful mid-tier contributors
- All other chains combined: <4% of total revenue
The Temp Check argues that Aave must focus on high-impact deployments and stop spreading resources thinly across low-yield networks.
Final Thoughts
- Aave’s Mantle launch keeps its L2 expansion alive, but governance discussions show a protocol shifting toward profitability, efficiency, and consolidation.
- The proposed multichain reset, including shutdowns and new revenue requirements, marks a turning point for Aave’s long-term strategy and DeFi’s broader evolution.