Aave’s Stani Kulechov Responds To Chaos Labs Exit, Confirms Continuation Of Two-Layer Risk Management And LlamaRisk Transition
In Brief
Stani Kulechov addresses Chaos Labs exit from Aave, confirming no disruption while highlighting strategic differences, governance shifts, and continued reliance on a multi-layer risk model with LlamaRisk.
Stani Kulechov, founder of the decentralized finance protocol Aave, has commented publicly on the decision by Chaos Labs to step down from its role in overseeing risk management for the platform.
In the statement, appreciation was expressed for the contributions made by Chaos Labs over several years, highlighting its role in supporting the development and operational maturity of Aave. It was emphasized that the transition would not impact the protocol’s functionality, including its smart contracts, asset listings, or network deployments, and that coordination would continue during the offboarding process.
Aave’s existing two-layer economic risk framework, previously managed by Chaos Labs alongside LlamaRisk, was described as a system that, despite occasional differences between providers, has played a significant role in maintaining protocol security. The continuation of this dual-layer model, supplemented by an additional technical risk layer under Aave Labs, was reaffirmed.
Discussions between the parties reportedly addressed future arrangements, including financial terms. While an increase in compensation for risk management services was considered, certain elements of Chaos Labs’ proposal were not supported. These included the prospect of appointing a single risk manager, replacing Chainlink as the default oracle provider, and adopting unaudited vault infrastructure as a standard.
The statement indicated that maintaining multiple providers and avoiding dependency on a single vendor remains a priority, particularly given the protocol’s scale and user expectations. Confidence in Chainlink’s established performance was also noted.
Looking ahead, Aave Labs is expected to collaborate closely with LlamaRisk to ensure continuity in risk oversight. Additional resources may be allocated to support the transition, while acknowledgment was again given to Chaos Labs for its past contributions to the protocol’s growth.
Chaos Labs Exits Aave Risk Management Role Amid Governance Shifts And Strategic Differences
Chaos Labs has earlier announced its decision to step down as the official risk manager for Aave after more than three years of involvement, marking another notable departure of a key contributor from the major onchain lending platform amid broader governance changes.
The announcement was made by Omer Goldberg, who stated on social media that the decision followed careful consideration rather than being made abruptly. It was indicated that the partnership no longer aligned with the firm’s perspective on how risk management should be conducted within the protocol.
Chaos Labs has played a central role in Aave’s operations, having been responsible for pricing all loans issued on the platform since 2022 and overseeing risk parameters across both V2 and V3 markets and multiple network deployments. The firm’s exit therefore represents a shift in the protocol’s operational structure.
According to Goldberg, several factors contributed to the decision. These included concerns regarding the sustainability of the engagement from a financial standpoint, as well as the recent exits of other prominent contributors such as BGD Labs and Aave Chan Initiative. A further issue cited was a divergence in views with Aave Labs over the future direction of risk management, particularly as the protocol prepares to expand its capabilities with the anticipated launch of its next version.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
