Aave, a leading DeFi protocol, is navigating a critical transition in its risk management strategy following the exit of key contributor Chaos Labs. With a total value locked (TVL) of $42.34 billion and $16.55 billion in loans, Aave has relied on external teams like Chaos Labs to update risk parameters such as liquidation thresholds and borrow limits. Chaos Labs' departure signals a shift in Aave's risk management approach, as the protocol now depends more on internal teams and other providers like LlamaRisk to maintain stability. The exit of Chaos Labs, which had been integral in pricing loans and managing risk as Aave's TVL grew from $5.2 billion to over $26 billion, highlights the challenges of maintaining high-quality risk oversight as protocols scale. Aave's founder, Stani Kulechov, acknowledged the contributions of Chaos Labs and emphasized the need for LlamaRisk to expand its role. As Aave transitions towards its V4 upgrade, the increased complexity of risk management could impact market confidence if adjustments slow down, underscoring the importance of effective execution in this new phase.