The Aave community has voted to approve the ARFC proposal to abandon small-cap stablecoins on the Ethereum network on V2

The PSnapshot page shows that the Aave community has voted to pass the ARFC proposal to "deprecate small-cap stablecoins on the Aave V2 Ethereum network." The proposal author will next submit an Aave Improvement Proposal (AIP) to implement its proposed updates. The proposal proposes to eliminate USDP, GUSD, LUSD, FRAX, and sUSD on Aave V2. The proposal states that recent events have highlighted Aave's need to reduce its V2 exposure to less-used stablecoins, many of which have limited liquidity, allowing price manipulation and other potentially harmful events. Previously, the community followed a two-stage process to deprecate stablecoins, taking BUSD and TUSD as examples. It is worth noting that none of the above stablecoins are collateral assets, reducing the complexity of the process.