Chaos Labs received funding from 23 companies and six angel investors.
Chaos Labs, a New York-based highly automated economic security system for crypto protocols, has raised $20 million in seed funding led by investment management firm Galaxy and payment platform PayPal.
According to the press release shared on February 21st, the seed funding will be used to “expand its offerings and build out its suite of risk and security products.”
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PayPal Ventures Partner, Amman Bhasin, commented on the payment platform’s investment by stating:
Chaos Labs addresses by arming protocols, investors, and users with a suite of risk management and optimization tools to protect against these vulnerabilities. We're excited to invest in Chaos Labs as it aims to solve one of the most critical risk vectors in crypto and DeFi.
Chaos Labs uses an automated risk management platform to shield crypto protocols from “economic vulnerabilities and market manipulation events." The company employs “robust agent- and scenario-based simulations" to protect protocols from exploits and other risks.
Omer Goldberg, CEO and founder of Chaos Labs, used Twitter to comment on the news. In a rather lengthy Twitter thread, the man noted that by working with Chaos Labs, various crypto-related firms can safely “optimize user capital efficiency and quickly adapt to changing crypto markets.”
On top of that, the man highlighted that “protecting crypto protocols against economic system exploits and insufficient risk parameters has never been more important.” Goldberg substantiated this statement by reminding that in 2022, several billions of dollars were stolen from decentralized finance (DeFi) platforms.
When talking about how decentralized finance protocols should protect themselves from malicious actors, Omer Goldberg noted:
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.
In the press release, the firm highlighted that 23 companies and six angel investors participated in Chaos Labs' seed funding round. The company received investments from prominent crypto-related firms, such as Coinbase, Avalanche, OpenSea, Polygon, and UniSwap.
In its announcement, Chaos Labs celebrated that during its first year, the company worked with crypto giants like Aave, Uniswap Foundation, Chainlink, and BENQI.
