Chaos Labs, a New York-based first highly automated economic security system for crypto protocols, announced that it raised $20 million in seed funding.
The round was led by Galaxy and PayPal Ventures, with participation from Coinbase, Uniswap, Lightspeed, Bessemer, Hashkey, and top angels such as Balaji Srinivasan and Naval Ravikant.
The company will use the funds to expand its offerings and build out its suite of risk and security products.
"As the world moves from the opacities of traditional finance to a more open DeFi system, financial risk management must advance accordingly," said Chaos Labs' CEO and Founder, Omer Goldberg. "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."
Chaos labs is the first automated risk management platform for crypto, operating best-in-class security practices including robust agent- and scenario-based simulations.
In its first year of operations, Chaos Labs has partnered with major Decentralized Finance ("DeFi") customers, including Aave, Chainlink, Uniswap, BENQI, and Osmosis, to secure and optimize the protocols against manipulation and black swan market events, while also offering capital optimization recommendations.
Working with Chaos Labs, teams can optimize user capital efficiency and more quickly adapt to ever-changing crypto markets – helping them stay competitive without compromising on the security of their protocol.
Its risk suite can help protect DeFi protocols of all structures from malicious attacks with preventative measures and monitoring tooling.
Company: Chaos Labs, Inc.
Raised: $20.0M
Round: Seed Round
Funding Month: February 2023
Lead Investors: Galaxy and PayPal Ventures
Additional Investors: Coinbase, Uniswap, Lightspeed, Bessemer, Hashkey, and top angels such as Balaji Srinivasan and Naval Ravikant
Company Website: https://chaoslabs.xyz/
Software Category: Economic Security and Risk Management
About the Company: Chaos Labs is the first automated economic security system for crypto protocols utilizing state-of-the-art monitoring and simulations. The company aims to scale crypto adoption by providing protocols with custom and automated economic security tooling that verifies a protocol's durability and stability in any market condition. Chaos Labs' tooling allows core teams and community members to better monitor protocol health and risks in real-time to execute mainnet changes before a potential vulnerability is exploited. With Chaos Labs, teams can protect user funds from market-based attacks and optimize capital efficiency. Since it was founded in October 2021, Chaos Labs has grown rapidly and won marquee industry clients including Aave, BENQI, Osmosis, and dYdX.
Source: Ronny Hassid