More on Chaos Labs

Chaos Labs Walks Away From $5M Aave Risk Mandate Over V4 Architecture, Underfunded Risk Budget, And Fundamental Disagreement On How Risk Should Be Managed At DeFi’s Largest Lending Protocol.

Chaos Labs Walks Away From $5M Aave Risk Mandate Over V4 Architecture, Underfunded Risk Budget, And Fundamental Disagreement On How Risk Should Be Managed At DeFi’s Largest Lending Protocol.

𝕏/@omeragoldberg ·

Aave goes live on X Layer L2, integrating with OKX ecosystem to offer multi-asset lending powered by Chainlink oracles and risk frameworks from Chaos Labs

Aave goes live on X Layer L2, integrating with OKX ecosystem to offer multi-asset lending powered by Chainlink oracles and risk frameworks from Chaos Labs

𝕏/@aave ·

Aave suffered about $21M dollars in wrongful liquidations after an automated wstETH oracle cap update from Chaos Labs’ system underpriced collateral, briefly making healthy positions appear undercollateralized

Aave suffered about $21M dollars in wrongful liquidations after an automated wstETH oracle cap update from Chaos Labs’ system underpriced collateral, briefly making healthy positions appear undercollateralized

𝕏/@yieldsandmore ·

Chaos Labs introduces Chaos Vaults

Chaos Labs introduces Chaos Vaults

𝕏/@chaoslabs ·

Chaos Labs flagged risks as Pendle looping swells Ethena’s USDe exposure on Aave to $6.6B, warning that a funding reversal could spark rapid deleveraging. It also noted Ethena has $580M of its own reserves on Aave, urging limits to protect redemption liquidity.

Chaos Labs flagged risks as Pendle looping swells Ethena’s USDe exposure on Aave to $6.6B, warning that a funding reversal could spark rapid deleveraging. It also noted Ethena has $580M of its own reserves on Aave, urging limits to protect redemption liquidity.

The Block ·

In its latest research paper, “Stress Testing Ethena: A Quantitative Look at Protocol Stability,” Chaos Labs examines how USDe and sUSDe perform under extreme scenarios like centralized exchange (CEX) outages and collateral stress. With USDe-backed collateral on Aave surpassing $2.5B, driven by PTs and USDe loops, the study highlights that while theoretical risks exist from simultaneous CEX failures and ETH/BTC price drops, Aave’s robust risk controls and oracle systems mitigate impacts in nearly all modeled cases.

In its latest research paper, “Stress Testing Ethena: A Quantitative Look at Protocol Stability,” Chaos Labs examines how USDe and sUSDe perform under extreme scenarios like centralized exchange (CEX) outages and collateral stress. With USDe-backed collateral on Aave surpassing $2.5B, driven by PTs and USDe loops, the study highlights that while theoretical risks exist from simultaneous CEX failures and ETH/BTC price drops, Aave’s robust risk controls and oracle systems mitigate impacts in nearly all modeled cases.

𝕏/@chaos_labs ·

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