Gauntlet ends contract with AAVE DAO

Popular decentralized lending platform Ave, now owned by the company known as Avara, must find a new company to provide risk management services following its recent split with Gauntlet.

The decision was announced last night at the AAVE forums by Gauntlet co-founder John Morrow.

Running the gauntlet

According to Morrow, the relationship between the company and Aave DAO, which controls the protocol, has been strained by inconsistent guidelines and the unwritten demands and intentions of the larger DAO stakeholders. Gauntlet has begun looking for potential replacement companies for their services and has stated that they are open to working with Aave/Avara again in the future.

That being said, current circumstances have led to the decision to part ways with the Gauntlet.

“We take pride in our work. […]. Almost everyone on our 60-person team has contributed to Aave or worked on infrastructure support. It is because of all of this that it pains us to say that Gauntlet will no longer be able to continue our work with Ave. We will terminate our payment stream as soon as possible and work with other contributors to find a replacement for the Risk Manager.

Morrow cited events such as the AIP-371 fiasco and Chaos on Optimism as some of the impetus for the decision. He also mentioned some of the steps his company has taken to other platforms, which Aave DAO stakeholders see as “moonlighting for live competition.”

AAVE representatives respond

Former Aave Labs CTO, current community member and Defi developer Ernesto Boado and Aave DAO service provider Mark Zeller responded to the article, giving their own insight into the situation.

Both contested the idea that the AAVE community had misused the gauntlet. Although Boado was more reserved with his criticism, Zeller took the opportunity to criticize Gauntlet's reading of events.

“Gantlet is a 1B company. […] There are zero serious unicorns and zero company boards that allow the team to let go of their most popular client. […] Unless there is a more profitable and strategic alternative. “Mark has not been good to us” is a poor excuse for Gauntlet looking at foreign trade opportunities. “We came out because we were oppressed” must have been considered a better option than being seen as a mercenary.

Zeller also said that because of these events, ACI, which he leads, is looking for someone to fill the prestigious position with a budget of $1.6 million and is waiting for candidates.