Chaos Labs said that it will use these funds to boost the security of the DeFi protocols through its services like capital efficiency and risk optimization, streamlined risk assessments, spend optimizations, and much more.
Despite these tumultuous times in the market, crypto firms continue to secure fresh funding. On Tuesday, February 21, Chaos Labs announced securing $20 million in funding led by PayPal and Galaxy Digital.
Chaos Labs Funding
The funding round also saw participation from other market players like Coinbase, Lightspeed, Uniswap, Bessemer, Hashkey and top investors such as Naval Ravikant and Balaji Srinivasan.
Chaos Labs provides an automated economic security system for crypto protocols. The crypto firm said that it will be using these funds to expand its suite of security and risk products. During their first year of operation, Chaos Labs partnered with decentralized finance (DeFi) customers. This includes names like Chainlink, Aave, Uniswap, BENQI, and Osmosis. The goal was to secure and optimize the protocols against manipulation and black swan market events.
Crypto thefts have been on a steep rise, especially in the DeFi markets. Last year in 2022, the DeFi market lost more than $2.05 billion to theft activities. Malicious actors have been using creative methods to exploit on-chain protocol vulnerabilities. As a result, protecting crypto protocols against economic system exploits has become far more important.
Overcoming Security Issues in Crypto Protocols
Chaos Labs seeks to solve exactly these problems by securing protocols against market manipulation events. It is the first automated risk management platform for crypto. Chaos Labs operates with best-in-class security practices involving robust agents and scenario-based simulations. Speaking on the development, Chaos Labs’ CEO and Founder, Omer Goldberg said:
“As the world moves from the opacities of traditional finance to a more open DeFi system, financial risk management must advance accordingly. At Chaos Labs, we believe that every DeFi protocol must regularly conduct robust risk testing to verify and validate that their economic system is secure against hackers and unanticipated volatility. We’ve built a team of expert security and infrastructure engineers, and we’re working to solve for this by bringing world-class security and risk practices in running simulations of millions of economic scenarios on-chain.”
The risk solution platform of Chaos Labs offers multiple services like capital efficiency and risk optimization, streamlined risk assessments, spend optimizations, and much more.
Chaos Labs is the software solution to the crypto industry’s needs for on-chain risk management and mitigation.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.