Chaos Labs, a startup providing an automated economic security system for decentralized finance (DeFi) protocols, has raised $20 million in seed funding. The round was co-led by Galaxy Digital and PayPal Ventures, with participation from Coinbase, Uniswap, and other notable investors.
The funding will be used to expand Chaos Labs’ suite of risk and security products for DeFi protocols. The startup aims to help DeFi protocols protect user funds from attacks while optimizing capital efficiency.
The need for such solutions is clear: last year, hackers stole a record-setting $3.8 billion in crypto assets, with the vast majority coming from DeFi protocols, according to a recent Chainalysis report.
Chaos Labs, founded in October 2021, offers an automated, on-chain risk management platform that provides DeFi protocols with customized security monitoring and a simulation engine to verify the protocol’s health and stability in any market conditions. The startup has partnered with liquidity protocol Aave, blockchain data provider Chainlink, and decentralized exchange Uniswap.
“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,” said Chaos Labs founder and CEO Omer Goldberg.
Judith Faith has been writing about cryptocurrencies and blockchain technology for over five years. She is well versed in the industry and has an extensive network of industry contacts. She is also a frequent contributor to various cryptocurrency publications. With her vast knowledge and experience, she is able to provide insightful and valuable content to her readers. Judith is also an active investor in the cryptocurrency space and has a vested interest in the success of the industry.
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