Independent risk management firm Gauntlet has ended its nearly 4-year relationship providing services to leading decentralized finance (DeFi) lending protocol Aave.
In a post on Aave’s forums, Gauntlet co-founder John Morrow cited difficulties navigating the inconsistent guidelines and unwritten objectives of Aave’s decentralized autonomous organization (DAO) governance structure.
Morrow highlighted frustrations working through the DAO approval process for security improvements and upgrades, leading to significant delays or rejection of Gauntlet’s proposals. He also noted shifts in risk tolerances among key DAO stakeholders have complicated analysis.
In response, former Aave CTO Ernesto Boado expressed disappointment over “the trust that the Aave DAO put on Gauntlet being broken.”
Aave governance contributor Marc Zeller rebutted Gauntlet’s claims of unfair treatment and justified the end of the relationship due to Gauntlet pursuing “external business opportunities.”
The termination of the agreement comes as Aave explores new revenue streams beyond lending, including structured products. These expansions could expose the protocol and its users to novel risks.
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