Chaos Labs exits Aave risk role after clash over V4 scope and economics

Chaos Labs, a key risk service provider for Aave for nearly three years, is ending its engagement due to fundamental disagreements over the scope and economics of Aave's upcoming V4 protocol. The firm cited a misalignment in risk priorities as Aave transitions to a new architecture with a broader scope and increased legal/operational burdens. Additionally, Chaos Labs stated the engagement was financially unsustainable, having operated at a loss for three years, with even a proposed $5 million budget remaining at negative margins, which they deemed disproportionately low compared to Aave's revenue and typical bank allocations for risk infrastructure.

This departure is significant as Chaos Labs is a prominent DeFi risk infrastructure firm. The split highlights broader governance and contributor challenges Aave faces during its V4 transition, with Chaos Labs noting that many core contributors from the V3 era have already departed. The situation underscores Aave's reliance on service providers like Chaos Labs for its operational resilience and revenue generation.

(Source：Crypto Briefing)