Chaos Labs Leaves Aave Due to Budget, Risk Disagreements

Chaos Labs, the primary risk service provider for the Aave ecosystem for three years, has ended its engagement due to disagreements over budget and risk management strategies. Chaos Labs founder Omer Goldberg stated that while Aave Labs offered to increase their budget to $5 million, the engagement no longer aligned with their vision for risk management. Goldberg cited increased workload from Aave V4's expanded functionality and the lack of regulatory clarity for risk managers as contributing factors. Aave Labs CEO Stani Kulechov presented a different perspective, suggesting Chaos Labs sought to become the sole risk provider, which would have forced Aave to remove other partners like LlamaRisk and abandon its two-layer economic risk model. Kulechov also mentioned that Aave was hesitant to adopt Chaos-built price oracles over Chainlink's, given user comfort and Aave's positive track record with Chainlink. He added that Chaos was already considering winding down its services. Despite the departure, Aave stated that its operations remain unaffected and that it will work with LlamaRisk to ensure a smooth transition, maintaining its existing risk model.

(Source：Cointelegraph)