TechFlow News, April 7: According to a post by Stani Kulechov (@StaniKulechov), founder and CEO of Aave, Chaos Labs has announced its withdrawal from the Risk Management role within the Aave DAO. Aave Labs respects this decision and expresses gratitude for Chaos Labs’ contributions over the years. The protocol’s smart contracts and network deployments remain unaffected.
Aave Labs revealed that it had engaged in multiple rounds of negotiations with Chaos Labs regarding contract renewal. While Aave Labs supported raising Chaos Labs’ risk management fee from its current level to $5 million, it opposed the $8 million proposal and explicitly rejected the following three terms: (1) appointing Chaos Labs as the sole risk manager; (2) replacing Chainlink with Chaos Labs’ oracle; and (3) designating Chaos Labs’ unaudited treasury as the default treasury for all B2B integrations.
Aave Labs emphasized its continued commitment to a two-layer risk management model and plans to introduce a third, Aave Labs-led technical risk management layer. During the transition period, LlamaRisk will assume expanded risk coverage responsibilities previously handled by Chaos Labs. Aave Labs will support LlamaRisk’s team expansion and budget increase, and provide engineering and analytical resources to ensure a smooth handover.
