Having Chaos Labs as a cornerstone of Aave risk management over the last 2 years has been crucial to maintaining the safety of the protocol, which is one of Aave’s defining features. The depth and quality of Chaos’ analysis, combined with the positive relationship they have cultivated with LlamaRisk, the other risk provider, is significant for the DAO, and they have always been very open to work together and reach out for any feedback or opinions. As @eboado said, finding the appropriate balance between risk and growth for a protocol like Aave is a difficult task, and Chaos has managed to thread the needle well over their entire engagement.
We’re also encouraged by the leading work Chaos has done in developing Edge Risk Oracles, which will lead to a more automated and efficient Aave protocol over the near term. We’re looking forward to this being rolled out more widely in v4 and cementing Aave as the leading lending and borrowing protocol in crypto.
Lastly, collaborating closely with LlamaRisk is a huge plus for the protocol - they bring differentiated legal, regulatory, and ‘qualitative’ expertise combined with a focus on RWAs, and Aave should make use of this unique mix of service providers to grow quickly while keeping a close eye on risk at all times.
All in all, we are very much in favour of continuing Chaos Labs’ engagement with Aave for the next year.