Risk management company Gauntlet terminates cooperation with Aave: Unable to tolerate inconsistent instructions from Aave Dao

Recently, risk management company Gauntlet announced that it would terminate its four-year relationship with lending protocol Aave. Gauntlet claimed that it was difficult to deal with inconsistent instructions and unwritten goals among Aave DAO stakeholders. This decision triggered widespread criticism from Aave team and community members.

Gauntlet terminates cooperation with Aave

On the Aave forum, Gauntlet co-founder John Morrow stated in an article that they could not continue to cooperate with Aave, while revealing the relationship with Aave DAO. There are difficulties in cooperation.

It is understood that the company assumes Aave’s market risk management responsibilities and is responsible for reviewing protocol design, monitoring returns and updating risk status. At the same time, they are also responsible for conceiving long-term economic strategies and conducting business simulations for the protocol, and can be regarded as Aave's outsourced "risk stewards".

What is Gauntlet?

Gauntlet is a risk management company focusing on the blockchain and cryptocurrency fields, committed to providing comprehensive risk assessment and management services to ensure that financial platforms maintain robust operations in this rapidly evolving industry. The company is committed to helping customers identify and respond to potential risks they may face, thereby providing them with reliable protection and support so that they can better respond to market challenges

As an important participant in the DeFi ecosystem, the company Risk management services are used by multiple encryption protocols, including UniSwap, Maker and Compound.

The company’s business scope covers regular monitoring of risk status, formulation of risk parameters and strategies, and optimization of the protocol’s incentive plan. while ensuring the liquidity and security of the protocol.

On the other hand, as one of the leading lending protocols, Aave v3 has a TVL of US$6.1 billion, ranking sixth in the DeFi protocol rankings.

Morrow: Can’t stand Aave Dao’s inconsistent instructions

Faced with the reasons for terminating the cooperation, Morrow admitted that it was difficult for the company to deal with "inconsistency among Aave DAO stakeholders" instructions and unwritten goals", and cited multiple cases to illustrate.

One of the cases is that Gauntlet suffered criticism from the Aave DAO when it distributed the issuance of ARB to Aave users. However, Aave DAO had the opposite reaction to another risk management team, Chaos Labs, with a positive and positive response to a proposal to collaborate with Optimism.

In addition, Morrow also mentioned the main reason for withdrawing from this partnership: the Aave community also hopes to obtain exclusive services from Gauntlet without paying fees, which is an important factor in the decision to part ways.

And added, "We will cease our cooperation content and work with other industry players to find a replacement for the risk management team as soon as possible."

Aave hinted that Gauntlet's exit was commercial Consideration

Soon, Gauntlet’s article aroused widespread backlash from the Aave community, with some members expressing disappointment with Gauntlet’s decision.

Ernesto Boado, former chief technology officer of Aave, and Marc Zeller, a major participant in the Aave community, also responded in forum posts, implying that the company’s decision was based on commercial considerations: My trust in Aave DAO and Gauntlet has been broken I'm disappointed, and I respect the decision if there are other business considerations, but I don't agree with Aave's statement that it treats Gauntlet differently.

Some people also believe that it is normal for Aave to take different measures and instructions for different agreements and events: Gauntlet's termination of the one-year contract after a few months of renewal will damage your company's reputation, and One has to question whether the decision had ulterior motives.

Previously, Gauntlet had just passed a governance vote in November last year and renewed its contract with Aave worth US$1.6 million.

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