DEFI SHOCK: CHAOS LABS QUITS AAVE! 📉
The Exit: After three years, primary risk manager Chaos Labs is officially terminating its partnership with Aave.
The Reason: Massive disagreements over the Aave V4 upgrade, budget constraints, and unresolved legal liability for risk managers.
Risk Concerns: Chaos Labs warned that Aave’s budget for risk (only ~2% of revenue) is unsustainable for the complexity of V4.
Market Impact: AAVE price reacted immediately, dropping below $90 for the first time since 2024 as traders weigh the risks of this contributor exodus.
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