Aave Horizon, the largest RWA lending market in DeFi, is upgrading its use of LlamaGuard NAV to leverage the Chainlink Runtime Environment (CRE) for robust pricing and enhanced security. Built in collaboration between Chainlink, @aave, @LlamaRisk, LlamaGuard NAV is purpose-built for pricing tokenized real-world assets (RWAs). With this integration, the Net Asset Value (NAV) data feeds used by Aave Horizon will be exclusively powered by CRE in collaboration with LlamaRisk. CRE provides a modular framework that enables LlamaGuard NAV to aggregate diverse data inputs to establish NAV integrity, including S&P risk ratings and macroeconomic data to enable smarter, safer oracles. CRE will also enable LlamaGuard to initiate automated management actions to contain risk, such as triggering circuit breakers or adjusting parameters on target DeFi protocols. By combining Chainlink's proven reliability and neutrality with LlamaRisk’s deep expertise on protocol risk management, LlamaGuard NAV can provide protocols like Aave Horizon with a robust, automated risk management solution that can safely scale the adoption of tokenized assets across DeFi. This development builds upon the initial implementation of LlamaGuard NAV introduced earlier this year: research.llamarisk.com/resea…

Risk Management in DeFi is a continuous process and not a checkpoint. @WormholeOracle, Founder and CEO at @LlamaRisk, will take the stage at Vault Summit NYC. June 5, NYC · nyc.vaultsummit.xyz

The joint effort striving to fully recapitalize @KelpDAO rsETH speaks to the shared accountability of leaders in our industry; to serve the common good first and foremost. We are proud to be working together with @aave labs, @Token_Logic, @chainlink, and @Certora as an Aave Service Provider. The rapid response and tight coordination of Aave SPs in a time of need helped make this possible. In spite of the intense pressure, DeFi comes together to put users first. There’s a long road ahead and it will not be easy, but we stand united. DeFi will win.

Our CEO Adam @WormholeOracle at @stable_summit in Cannes on LlamaGuard NAV, risk-informed oracles, @Chainlink’s CRE, and LlamaGuard powering @aave Horizon. Full talk ↓

We respect the decision of Chaos Labs to step down as one of the two risk managers for the Aave DAO. We want to thank Chaos Labs for their work over the years. They have been a valuable partner to the Aave DAO, and their contributions have helped Aave grow and mature. There is no disruption to the Aave Protocol, its smart contracts, asset listings, or network deployments, and we will work closely with Chaos Labs during the offboarding process. Aave operates with a two-layer economic risk model that has been managed by Chaos Labs and LlamaRisk. While this model does create tension between risk managers from time to time, we believe it has been valuable in safeguarding Aave. We strongly support maintaining a two-layer approach and will continue supporting this model, alongside an additional technical risk layer managed by Aave Labs. Over the past weeks, we held discussions with the Chaos team regarding next steps, as Chaos was exploring winding down its risk consultancy services business (and had already begun winding down some agreements with other protocols). We were generally supportive of a 2× increase in their risk management payment to $5M, but not supportive of $8M without a separate addendum at a later stage if the workload proved higher than anticipated. What we did not support were other elements of the proposal, including setting Chaos Labs as the sole risk manager and using Chaos Labs price oracles instead of Chainlink on all new deployments, as well as adopting Chaos Labs vaults as the default vaults (which are not yet audited) for all B2B integrations. While we do not see issues with these Chaos products or their future viability, we strongly believe that, given the scale of the Aave protocol, it should maintain at least a two-layer risk management model and vendor lock-in free vaults. Additionally, given the strong track record with Chainlink, we prefer to continue supporting Chainlink for price oracles, which our users are currently more comfortable with at scale. Regarding Aave V4, the architecture introduces isolated risk markets through Spokes, new liquidation logic, and governance-controlled parameters that give the DAO more granular control over how it manages risk across different markets and assets. We held multiple risk calls with Chaos Labs employees in attendance well before V4 went live, and the feedback we received during those sessions does not align with the concerns expressed in their post. For the immediate future, Aave Labs will work closely with LlamaRisk to ensure a smooth transition and uninterrupted risk coverage for the protocol. LlamaRisk already serves as a risk contributor to the Aave DAO and has deep familiarity with the protocol’s architecture and parameters. We support LlamaRisk increasing their budget to accommodate this additional workload and expanding their team as needed. Aave Labs will also contribute engineering and analytical resources wherever necessary to support this transition. We also want to thank the entire Chaos Labs team for their contributions over the years, as they have helped bring the protocol we built into its current level of maturity.

Working with @CurveFinance since 2021. Here’s our latest update on our progress. 🦙 We focused on proactive risk management, $crvUSD stability, oracle upgrades, governance, YieldBasis research & market optimization, strengthening Curve’s resilience, and LlamaLend v2 prep. Here are some key highlights from the report: • Secured a 250,000 OP grant from @Optimism to bootstrap LlamaLend v2 • Protocol revenue continued to grow steadily • LlamaLend v2 prep & coordination with Swiss Stake on audits, launch sequencing, and specs • Developed new risk frameworks for upcoming markets • Contributed to improved crvUSD stability • Contributed towards designing more robust oracles for Llamalend markets • Submitted 26 governance proposals across LlamaLend, crvUSD, and AMMs with great engagement