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Aave Seeks to Reduce Scroll Exposure Amid Governance Chaos - Unchained
DeFi protocol Aave’s community is considering a proposal to immediately adjust risk parameters for all assets on the Aave V3 Scroll instance.
Aave governance delegate Aave Chan Initiative (ACI) proposed reducing exposure to the Scroll ecosystem in response to pronounced instability in Scroll’s governance model.
Scroll’s DAO halted new proposals and initiated a redesign of its governance structure following the resignation of its DAO lead, creating uncertainty around ongoing protocol operations.
This story is an excerpt from the Unchained Daily newsletter.
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The Scroll DAO described the measure as a “thoughtful step” that would help design more efficient processes. But the wider crypto community, including Aave’s governance delegates, did not see it that way.
Aave risk manager Chaos Labs supported ACI’s proposal, noting that Scroll’s onchain activity had also contracted significantly over the last year.