Snapshot is live here, but we wanted to touch on a few last items.
Multiple risk vendors
- This has been discussed at length throughout this proposal and it is our understanding that the community is supportive of this.
- If the DAO hopes to grow 10x in the near term (as @fig alluded to) we will need to onboard additional vendors across multiple service areas, especially risk. Divergence in parameter recommendations is important and exactly the moments in which additional discussion is critical. Having more voices, more models, and more opinions only increase the robustness of the DAO’s decision-making process.
- This is an opportunity to make results and recommendations more transparent and allow the community to voice an opinion on the balance between capital efficiency and economic security. We hope that this fosters a plan to revisit the RiskDAO concept proposed last year (to which it seemed all relevant parties were supportive).
- Concluding that introducing additional full-time risk contributors for Aave results in higher risk seems counterintuitive to us, the responses in the forums, and the opinions from the majority of the community members with which we have spoken. This obviously isn’t the case for traditional finance, smart contract auditing, web2 cyber security, etc. where redundancies and differences in opinion are key for coverage.
- Chaos is happy to prioritize Aave’s success and collaborate with any risk and security contributor to advance this cause.
Removing Risk Parameter Recommendations from the Chaos Labs Proposal
- The Gauntlet team has made it very clear on this thread that they view Chaos as competitive in parameter recommendations. Chaos views competition as a healthy forcing function for building better, more transparent products at a more competitive price. The real winner of the said competition is the Aave DAO.
- Predicating votes based on whether we remove the scope that an incumbent view as competitive is a clear embodiment of conflicting interests. Furthermore, this is a perfect example of the risks of early vendor lock-in, as stated above.
- This is a partnership that has zero upfront cost to the DAO and allows them to examine alternative solutions freely while shifting the vast majority of the risk to Chaos.
- The spirit behind this proposal was to make this an easy decision for Aave token holders to onboard new DAO contributors as we move forward to further decentralizing protocol risk management and scale Aave as a whole.
To reiterate, Chaos has acknowledged the obvious conflict of interests and will abstain from the vote. We will also ask our investors to do the same so that the community can make a decision about what it believes is best for the protocol.
Our team at Chaos will do all of the work upfront and showcase its capabilities. Once that has been delivered and battle-tested, the DAO can decide to retain its services at a predetermined price or terminate before any payment is made. This gives certainty to Chaos and flexibility to the DAO.
We’re looking forward to seeing the community’s feedback and engaging further!