Chaos Labs, an automated economic security system for crypto protocols, has raised $20m in a seed funding round.
The round was led by Galaxy and PayPal Ventures and saw participation from Coinbase, Lightspeed, Bessemer, Uniswap, Hashkey and a number of angel investors.
The company is the first automated risk management platform for crypto, operating best-in-class security practices including robust agent- and scenario-based simulations.
Working with Chaos Labs, the firm claims teams can optimise user capital efficiency and more quickly adapt to ever-changing crypto markets – helping them stay competitive without compromising on the security of their protocol.
Chaos Labs will use the funding to expand its offerings and build out its suite of risk and security products.
In its first year of operations, Chaos Labs partnered with major 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.
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.”
Elsewhere in the blockchain and cryptocurrency space, Gateway.fm, a decentralised blockchain infrastructure node provider, scored $4.6m in a seed funding round led by Lemniscap.
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