Risk management company Gauntlet will terminate its longstanding partnership with the lending platform Aave after four years of collaboration. Co-founder John Morrow cited challenges in navigating conflicting guiding principles and unspoken goals of major stakeholders as the primary reason for the decision, stemming from difficulties faced in the previous year.
Morrow also pointed to instances of widespread community criticism of Gauntlet’s proposed solutions, which he deemed undeserved. In light of this situation, the company concluded that it was better to discontinue the collaboration, Morrow added. Former Aave CTO and DAO participant Ernesto Boado acknowledged that community criticism can be sharper than warranted. According to Boado, Gauntlet’s work is highly valued within the organization, but their departure leaves the platform in the midst of a battle.
Aave DAO Co-founder Mark Zeller deemed the justification of “we are leaving because we were treated unfairly” unconvincing. He speculated that Gauntlet simply found a more economically advantageous alternative, having earned approximately $10 million during their collaboration.
Zeller referred to the vacant position of a risk management service provider with an annual budget of $1.6 million as a “prestigious slot.”
In November 2023, Gauntlet experts published a report noting an increase in centralization within the DeFi sector.
It is worth mentioning that Forbes included Gauntlet in its list of the top 50 fintech companies at the end of 2024.
