
Chaos Labs said it will end its Aave risk management role after supporting all V2 and V3 markets since November 2022, citing structural disagreements, Aave V4 complexity, and budget concerns.
Chaos Labs said it will end its risk management role for Aave after supporting all V2 and V3 markets since November 2022. The firm said Aave’s total value locked grew from $5.2 billion to more than $26 billion during that period, with more than $2.5 trillion in deposits and over $2 billion in liquidations, but cited structural disagreements over risk management, the added complexity of Aave V4, and budget levels as reasons for its departure. Aave founder Stani Kulechov previously said the exit will not affect protocol smart contracts, asset listings, or network deployments, and that Aave will continue using its dual-layer risk model with LlamaRisk and Aave Labs.