#GateSquareAprilPostingChallenge Another notable split has occurred within the Aave ecosystem. One of the key contributors to the protocol, Chaos Labs, announced that it has ended its risk management collaboration with Aave DAO. The decision was publicly disclosed through the Aave governance forum.

In a statement by Chaos Labs, the primary reason for the separation was cited as differences in approach to risk management. The company indicated that over time, a misalignment developed regarding how risk should be handled with Aave. The statement also mentioned that the departure of key contributors within the team increased the workload and elevated operational risks.

Chaos Labs also noted that the Aave V4 upgrade influenced this decision. The new version expanded the scope of risk management but also increased operational and legal burdens. The company stated that this architecture did not align with their design approach, making it impossible to create a sustainable working environment.

The financial aspect also played a significant role in the decision to split. Chaos Labs mentioned that risk management activities conducted with Aave over the past three years have been carried out at a loss, and even with budget increases, these activities would continue with negative margins.

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