The risk management firm \u201cwill be terminating its payment stream as soon as possible.\u201d <\/p>\n
Gauntlet co-founder, John Morrow, announced<\/a> today the risk management firm will end its four-year relationship with decentralized finance ( DeFi<\/a>) lender, Aave<\/a>.<\/p>\n \u201cA lot has changed during the four years we\u2019ve worked with Aave,\u201d wrote Morrow today in a post in Aave\u2019s governance forum.\u201cIn the past year, we\u2019ve found it difficult to navigate the inconsistent guidelines and unwritten objectives of the largest stakeholders.\u201d<\/p>\n The move means Ethereum\u2019s largest DeFi protocol is now seeking a replacement to oversee key protocol parameters and decisions. The public resignation and debate around it is also a reminder of how differently decentralized autonomous organizations operate from traditional companies.<\/p>\n Aave is one of Ethereum\u2019s largest DeFi lending protocols, currently handling $8.4 billion in total value locked, according to DefiLlama. Its market cap sits at $1.3 billion, and its native token, AAVE, trades for $89.74%, with a 3.7% drop on the day.<\/p>\n <\/p>\n The surprise move, which ends a $1.6 million agreement between the two parties, was mainly driven by criticism Gauntlet received from the Aave community for selling the company\u2019s software to other protocols.<\/p>\n \u201cThe criticism referred to here is really just the assertion by members of the Aave community that we could not sell software or services to other protocols,\u201d Morrow told The Defiant.<\/p>\n \u201cWe tried to work with stakeholders to clarify, but we couldn’t find a path forward,\u201d he said.<\/p>\n Aave did not immediately reply to a request for comment from The Defiant.<\/p>\n Morrow said the risk management firm clashed with Aave community members on numerous occasions. For example, Morrow said on the forum post, Aave token holders opposed Gauntlet\u2019s proposal to distribute ARB emissions to Aave users, and criticized Gauntlet for working with Chaos Labs, which they called \u201cdirect competition.\u201d<\/p>\n One of Gauntlet\u2019s staunchest opposers within the Aave community is Marc Zeller, founder of the Aave Chain Initiative (ACI).<\/p>\n His organization was against renewing Gauntlet\u2019s engagement with Aave, claiming the risk management firm is \u201cby far the slowest service provider.\u201d <\/p>\nCriticism From Aave Community <\/strong><\/h2>\n
Slow Service Provider<\/strong><\/h2>\n