Chaos Labs Exits Aave Ecosystem, Citing Fundamental Risk Management Philosophy Misalignment

BlockBeats News, April 7th, Chaos Labs announced the end of its three-year tenure as a core contributor to the Aave ecosystem. The team stated that there was a fundamental disagreement between both parties on the "risk management approach," which continued to widen as the protocol developed. Chaos Labs cited three main reasons:

· Loss of core contributors leading to significantly increased operational pressure and risk
· Aave V4 expanding the risk management scope while adding operational and legal burdens
· Long-term participation being in a loss-making state, making it difficult to achieve profitability even with a higher budget

The team stated that under the current path, either lowering the execution standard or continuing to operate at a loss was unacceptable, so they chose to exit.

BlockBeats previously reported that on March 3rd, the Aave protocol's core governance team, Aave Chan Initiative (ACI), announced the closure of its operations and exit from AAVE. On February 20th, BGD Labs, the development team behind Aave V3's codebase, announced their exit.