# MIP 120 - Compound V2 and Aave V2 Optimizers Deprecation Final Phase

**URL:** <https://forum.morpho.org/t/mip-120-compound-v2-and-aave-v2-optimizers-deprecation-final-phase/2038>\
**Category:** Governance\
**Tags:** mip\
**Created:** [October 7, 2025, 3:17pm UTC](https://forum.morpho.org/t/mip-120-compound-v2-and-aave-v2-optimizers-deprecation-final-phase/2038 "2025-10-07T15:17:49Z")\
**Posts on this page:** 2\
**Page:** 1

<div class="post-metadata">

**Author:** ![MorphoAssociation](https://dub1.discourse-cdn.com/flex013/user_avatar/forum.morpho.org/morphoassociation/32/249_2.png) [@MorphoAssociation](https://forum.morpho.org/u/MorphoAssociation)\
**Post date:** [October 7, 2025, 3:17pm UTC](https://forum.morpho.org/t/mip-120-compound-v2-and-aave-v2-optimizers-deprecation-final-phase/2038/1 "2025-10-07T15:17:49Z")

</div>

Following the [Optimizer Deprecation Phase 3](https://forum.morpho.org/t/mip-84-morpho-optimizers-deprecation-phase-3/1081), we’re proposing to fully deprecate the Compound V2 and Aave V2 Optimizer instances. This is especially important as Aave and Compound are continuing to deprecate their respective V2 on Ethereum:

- [[ARFC] Aave v2 Deprecation - Update - Governance - Aave](https://governance.aave.com/t/arfc-aave-v2-deprecation-update/23008)
- [[Gauntlet] Compound V2 Deprecation Proposal - Proposals - Compound Community Forum](https://www.comp.xyz/t/gauntlet-compound-v2-deprecation-proposal/7237)

The current status of the Optimizer instances is the following:

- Compound V2 Optimizer has less than $100k of total deposits with $26k of active loans
- Aave V2 Optimizer has around $750k of total deposits with $324k of active loans

Given the relatively small amount of active loans, we propose deprecating all markets and covering any losses for users who would contact the Morpho Association.

**Important: As a reminder, deprecating a market puts all borrow positions liquidatable regardless of their health factor.**

After market deprecation, we will pause all entry points to the smart contracts to minimize the attack surface until the DAO reactivates withdrawals.

The target date is December 1, 2025, giving lenders and borrowers time to exit their positions.

---

<div class="post-metadata">

**Author:** ![MorphoAssociation](https://dub1.discourse-cdn.com/flex013/user_avatar/forum.morpho.org/morphoassociation/32/249_2.png) [@MorphoAssociation](https://forum.morpho.org/u/MorphoAssociation)\
**Post date:** [December 17, 2025, 7:42pm UTC](https://forum.morpho.org/t/mip-120-compound-v2-and-aave-v2-optimizers-deprecation-final-phase/2038/2 "2025-12-17T19:42:50Z")

</div>

The Aave V2 and Compound V2 Optimizer deprecation has been successfully executed.

The protocols are not going to be paused entirely to let users still exit the protocol.