Aave Risk Manager Chaos Labs Departs Amid Dispute

Chaos Labs, a key risk management firm for the Aave lending protocol, is stepping down after three years due to fundamental disagreements with Aave Labs regarding risk management strategies. Founder Omer Goldberg cited a lack of profitability, the recent departures of other major contributors like BGD Labs and Aave Chan Initiative, and a core misalignment on risk approach as reasons for the exit. Aave Labs reportedly offered $5 million to retain Chaos Labs, which had been operating at a loss, but the firm ultimately decided to leave.