Risk management company Gauntlet recently announced that it will terminate its four-year partnership with lending protocol Aave, claiming that it is difficult to deal with inconsistent instructions and unwritten goals among Aave DAO stakeholders. In response, there was widespread criticism from the Aave team and community members.
Gauntlet terminates partnership with Aave
Gauntlet co-founder John Morrow said in a post on the Aave forum yesterday that the company can no longer continue to work with Aave and revealed that there are difficulties working with the Aave DAO behind the protocol.
It is reported that the company is Aave's market risk management team, responsible for reviewing protocol design, monitoring returns and updating risk status. It also conceives long-term economic strategies and business simulations for the protocol. It can be said to be Aave's outsourced "risk steward".
What is a Gauntlet?
Gauntlet is a risk management company focused on the blockchain and cryptocurrency space. It mainly provides risk assessment and management services to help and ensure the healthy operation of financial platforms in the industry.
As an important participant in the DeFi ecosystem, the company's risk management services are used by multiple encryption protocols, including UniSwap, Maker and Compound, etc.
Specifically, the company's business includes regularly monitoring risk status, formulating risk parameters and strategies, and optimizing the protocol's incentive plan to ensure the liquidity and security of the protocol.
On the other hand, as one of the leading lending protocols, Aave v3 has a TVL of $6.1 billion, ranking sixth in the DeFi protocol rankings.
(Detailed explanation of the functions and processes of the blue chip protocol Aave governance module V3)
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 "inconsistent instructions and unwritten goals among Aave DAO stakeholders" and cited multiple cases to illustrate.
In one case, Gauntlet faced criticism from the Aave DAO when it distributed the issuance of ARBs to Aave users. However, Aave DAO responded in contrast 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 reasons for withdrawing from this partnership:
The Aave community also wanted exclusive services from Gauntlet without having to pay for them, which was a big factor in the decision to part ways.
He added, "We will cease our cooperation and work with other industry players to find a replacement for the risk management team as soon as possible."
Aave hints at business reasons for Gauntlet exit
Soon, Gauntlet's article sparked widespread backlash from the Aave community, with some members expressing disappointment at Gauntlet's decision.
Aave’s former chief technology officer Ernesto Boado and Marc Zeller, a major participant in the Aave community, also responded in forum posts, suggesting that the company’s decision was based on business considerations:
I am disappointed that the trust between Aave DAO and Gauntlet has been broken. I respect the decision if there are other business considerations, but I do not agree with Aave’s statement that Gauntlet is treated differently.
Some people also believe that it is normal for Aave to take different measures and instructions for different protocols and events:
Gauntlet terminating a one-year contract just months after renewing it will damage your company's reputation and have to be questioned as to whether there were ulterior motives for the decision.
Previously, Gauntlet had just renewed its $1.6 million contract with Aave through a governance vote in November last year.
This article Risk management company Gauntlet terminates cooperation with Aave: Fed up with unwritten guidelines and goals first appeared on Chain News ABMedia.