According to The Block, Chaos Labs, Aave’s leading risk management institution, has announced its official withdrawal from collaboration with Aave, ending three years of risk management services. Chaos Labs founder Omer Goldberg cited three primary reasons for the exit: prolonged financial losses, the departure of core contributors BGD Labs and ACI, and fundamental disagreements with Aave Labs regarding risk management philosophy in the context of Aave V4’s launch. It is understood that Aave Labs had proposed a $5 million retention budget, but Chaos Labs determined that the minimum operational budget required to manage both V3 and V4 is $8 million. Even if the budget issue were resolved, the divergence in risk management priorities between the two parties remains irreconcilable. Goldberg noted that the transition workload after V4’s launch will double, not halve, and the existing infrastructure has not yet been battle-tested, making the risks substantial. In response, Aave Labs CEO Stani Kulechov stated that there is no mandatory timeline for the V4 migration and that V3 will continue to operate normally.
Aave's top risk management firm, Chaos Labs, announces exit
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Summary
Top altcoin news breaks as Aave’s leading risk management firm, Chaos Labs, ends its three-year partnership. Founder Omer Goldberg cites long-term losses, the departure of BGD Labs and ACI, and disagreements with Aave Labs over risk priorities as key reasons. Aave Labs offered a $5 million retention budget, but Chaos Labs stated $8 million was the minimum required for V3 and V4 operations. Even with funding, strategic differences persisted. Goldberg warned that the V4 transition would double the workload and rely on untested infrastructure. Aave CEO Stani Kulechov said there is no strict timeline for V4 and that V3 remains active. On-chain developments continue to underscore major shifts in DeFi governance and operations.
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