Chaos Labs, a key risk manager for Aave's $26 billion DeFi protocol, is exiting the ecosystem amid internal disputes over the V4 upgrade and resource allocation.
The Israeli firm had managed Aave's risk since 2022, helping grow total value locked from $5 billion to over $26 billion while maintaining zero material bad debt. CEO Omer Goldberg cited fundamental misalignment with Aave's evolving strategy.
Aave's V4 upgrade introduces new architecture expanding risk management scope without matching resource increases. Chaos Labs operated at a loss despite proposed $5 million budget, calling current economics unsustainable.
The departure follows exits by major contributors ACI and BGD Labs, signaling growing internal friction. Aave founder Stani Kulechov responded that operations would continue uninterrupted using LlamaRisk and internal teams.