Aave loses key risk manager, Chaos Labs, amid contributor exodus and disputes
A key sticking point is Aave’s V4 upgrade, which introduces a new architecture and significantly expands the scope of risk management.
What to know:
- Chaos Labs exits Aave, citing “fundamental misalignment” on risk strategy, rising complexity from V4, and unsustainable economics despite a $5M budget proposal.
- The departure follows exits of ACI and BGD Labs, raising concerns about continuity, risk management and operational stability as Aave enters its next phase.
Since 2022, Chaos Labs has overseen risk across Aave’s markets, helping the protocol grow from roughly $5 billion to more than $26 billion in total value locked, while maintaining “zero material bad debt.” But despite that track record, the firm says it can no longer continue under current conditions.
“The engagement no longer reflects how we believe risk should be managed,” said Omer Goldberg, CEO of Chaos Labs, in a post on X, pointing to a “fundamental misalignment” with Aave’s evolving strategy.
A key sticking point is Aave’s V4 upgrade, which introduces a new architecture and significantly expands the scope of risk management. Chaos argues this shift increases both operational complexity and responsibility, without a matching increase in resources or alignment.
