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CryptoMediumUpdated×4•Originally published 6 April 2026•Updated 7 April 2026•
1 min read

Chaos Labs Exits Aave as Risk Manager Amid Governance Disputes Over V4 Upgrade

Key Facts

1Chaos Labs, a key risk manager for Aave, is leaving the protocol amid internal disputes.
2The disputes center on the Aave V4 upgrade, which introduces a new architecture and expands risk management scope.
3The departure occurs against a backdrop of a contributor exodus within the project.

Chaos Labs has officially concluded its three-year partnership with the Aave protocol following a strategic breakdown over the upcoming V4 upgrade. The dispute centered on Chaos Labs' proposal to replace Chainlink's role as the primary oracle provider, a move explicitly rejected by Aave founder Stani Kulechov. New details reveal that Chaos Labs estimated the expanded scope of Aave V4 requires at least $8 million in annual risk funding. The protocol's refusal to commit to this funding level created a significant gap, providing context to the "unsustainable economics" previously cited by the firm. Kulechov’s firm stance underscores a commitment to existing infrastructure, viewing the proposed shift as an unnecessary technical risk. This departure creates a significant operational vacancy for the Aave DAO, which must now secure a new risk management partner during a critical transition phase. Market participants are closely monitoring the impact of this high-profile exit on the protocol's governance stability and its standing within the DeFi ecosystem.