🔥 Chaos Labs exits the Aave ecosystem, saying there is a fundamental disagreement in risk management philosophy

On April 7, Chaos Labs posted to announce that it would end its role as a core contributor in the Aave ecosystem—one it has held for up to three years. The team said that there are fundamental disagreements between the two sides regarding “risk management approaches,” and as the protocol develops, this disagreement continues to widen. Chaos Labs cited three main reasons: loss of core contributors, which has led to a significant increase in operational pressure and risk; Aave V4 expands the scope of risk management while also adding operational and legal burdens; and long-term participation has remained in a loss-making state—making it difficult to achieve profitability even if the budget is increased. The team said that under the current path, they either have to lower execution standards or continue incurring losses, and both are unacceptable, so they chose to withdraw. Previously, on March 3 …
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