# AaveDAO

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#ChaosLabsExitsAaveDAO
The DeFi world is still processing this breakup. After three years of keeping Aave safe with zero bad debt, Chaos Labs has officially walked away from AaveDAO. And the reasons are bigger than just money.
Let's break it down simply.
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What happened?
Chaos Labs was Aave's top risk manager. Their job? Monitor loans, check collateral, prevent liquidations from spiraling, and stop bad debt from piling up. They did it perfectly for over three years.
Then came negotiations for Aave V4 — a major upgrade. Chaos Labs asked for $8 million per year to handle the extra workload. A
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🔥 AAVE DAO $25 million funding proposal sparks community excitement!
DeFi governance enters deep waters, just trending as the top topic on Gate Square — AAVE DAO approved a $25 million hefty funding proposal!
This is not just about the scale of funds, but also reflects the core contradiction in DeFi governance: efficiency vs transparency. Data shows that the AAVE ecosystem's TVL has surpassed $20 billion. If this funding is implemented, it could boost liquidity across the entire lending sector.
But the controversy is also obvious: Is the participation in DAO voting sufficient? Is there
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