Having two risk service providers supporting the Aave DAO marks a significant commitment to ensuring the safety of users funds. The inclusion of a second team alongside @ChaosLabs is a positive step. The Aave DAO’s decision to onboard Chaos Labs brought about noticeable improvements in terms of response time, ease of communication, and risk analysis tailored to the community’s tolerance levels.
While Aave has long been associated with Gauntlet, there were instances where it seemed Gauntlet’s priorities lay elsewhere. Reflecting on Gauntlet’s Service Provider renewal post, the relationship with Morpho appeared to be primarily focused on mechanism design review. However, recent announcements suggest a deeper, longer-term partnership as a Risk Service Provider between Gauntlet and Morpho. Such agreements are typically the result of extensive discussions that likely commenced before Gauntlet’s proposal for contract renewal with the Aave DAO.
It is our perspective that Gauntlet’s performance at Aave has been lacking for some time. The frequency of contributions from Chaos Labs underscores the disparity in work ethic. It appears Gauntlet may have been operating on autopilot at Aave and considering exiting for a while. Consequently, we believe it is in Gauntlet’s best interest to refund the full value of the Insurance Fund. The level of service provided has been below par, and in our view, Gauntlet’s decision to renew the contract with Aave may have been motivated by derisking other initiatives that have yet to materialize.
We voted NAY on the AIP to renew the Gauntlet contract, and our rationale can be found here, link to reasoning.