Chaos Labs quits as Aave's chief risk manager, fueling concerns amid contributor exodus and V4 rollout

Chaos Labs announced it is terminating its engagement as Aave's primary risk manager, citing a fundamental disagreement over how risk should be managed and saying funding for its role was inadequate ^{[1] [2]}.

TheDefiant noted Chaos Labs had been “pricing every loan on Aave since November 2022,” and framed the departure as part of a broader contributor exodus that included recent exits by BGD Labs and the Aave Chan Initiative ^{[2] [3]}.

Observers and industry coverage highlighted the timing as significant given Aave’s V4 upgrade, which expands the protocol’s risk-management architecture, and raised concerns about potential impacts to DeFi stability and AAVE’s market outlook ^{[4] [5]}.

The exit of a core risk manager leaves Aave facing near-term questions around risk governance and resourcing as V4 is implemented, according to reporting on the departures and upgrade ^{[2] [4]}.