Chaos Labs exits the Aave ecosystem, citing fundamental disagreements over risk management philosophy

Golden Finance reports that on April 7, Chaos Labs posted an announcement saying it will end its role as a core contributor in the Aave ecosystem, a position it has held for three years. The team said there were fundamental disagreements between the two parties in their “risk management approach,” and as the protocol developed, this divergence continued to widen. Chaos Labs cited three main reasons: · Core contributors left, resulting in a significant rise in operational pressure and risk · Aave V4 expands the scope of risk management while also increasing operational and legal burdens · Long-term participation remains unprofitable; even if the budget is increased, it still remains difficult to achieve profitability The team said that under the current path, either it would have to lower execution standards or continue to incur losses—both are unacceptable—so it chose to withdraw.