Chaos Labs wanted to replace Chainlink in Aave: why Stani Kulichov said no

Chaos Labs ended its risk management partnership with AAVE after three years, citing unsustainable economics and disagreements over how to manage V4.

This departure marks the final exit of a core contributor to DeFi’s largest lending protocol, DeFi, which has more than $24 billion in total value locked.

He left Caius AV Lab after three years in risk management

Chaos Labs founder Omar Goldberg identified three factors behind this decision.

• Key contributors to V3 left early, doubling the workload
• AV V4 introduced a completely new architecture that increased operational and legal burdens.
• Despite a proposed budget of $5 million, the company has made it clear that it will continue to operate at a loss.

The partnership no longer reflects how he believes risk should be managed, Goldberg said.

Goldberg compared AF’s risk spending to the banks’ standards. He indicated that AAF will achieve $142 million in revenue by 2025.

The company’s $3 million budget represented about 2% of that figure, far less than the 6% to 10% that banks typically allocate to compliance and risk.

Af answers and LlamaRisk intervenes

The founder of Av Stani Kuleshov admitted leavingBut he rejected some parts of the narrative.

He revealed that Chaos Labs sought to become the sole risk manager and replace Chainlink’s price oracles with its own product in new deployments.

AfLabs rejected both proposals to avoid falling into a supplier monopoly.

Challenge risk management company LlamaRisk, which works with AAV alongside other major protocols such as Curve and Athena, has committed to ensuring full operational continuity. The company explained that it will present a detailed transfer proposal during the week.

Meanwhile, analyst Duo Nine wondered around I have priority, noting that the third version V3 still has more than $ 24 billion, while the leaders are focusing their discussions on $ 10 million deposits in the fourth version V4.

AAVE is trading near $92 at the time of writing, up nearly 4% on the day. The token faces continued selling pressure due to the tensions in the government and the departure of some shareholders, which negatively affect the market sentiment.