Chaos Labs Raises $55M to Expand Onchain Economic Security Solutions

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Hongji Feng

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Hongji Feng

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Hongji is a crypto and tech reporter. He graduated from Northwestern University’s Medill School of Journalism with a Bachelor’s and a Master’s. He has previously interned at HTX (Huobi Global),…

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Last updated:

August 15, 2024 03:58 EDT

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Chaos Labs has secured $55 million in a Series A funding round to enhance its onchain economic security solutions. According to a Thursday announcement made by Chaos Labs, the funding round was led by Haun Ventures and received investments from Lightspeed Venture Partners, Galaxy Ventures, Wintermute Ventures, PayPal Ventures, Coinbase Ventures, and several other new investors.

Other angel investors included OpenAI Chief Product Officer Kevin Weil, Fireblocks CEO Michael Shaulov, Solana CEO Anatoly Yakovenko, Phantom Chief Technology Officer Francesco Agosti, and Talos CEO Anton Katz.

Improving DeFi Security and Efficiency

The funds will be used to advance the development of the company’s risk management platform, which is designed to support decentralized finance (DeFi) protocols.

This investment will enable Chaos Labs to broaden its product offerings and enhance its operations to improve security and efficiency within DeFi ecosystems.

“As onchain finance matures to compete with its centralized counterparts, the need for world-class risk management tools, designed from the ground up for the blockchain stack, is both clear and intuitive,” said Haun Ventures General Partner Diogo Mónica.

Chaos Labs’ Growth and Visions

The release stated that over the past year, Chaos Labs expanded its customer base, now supporting over 20 protocols, including Aave, GMX, and Jupiter, with its risk management technology securing $860 billion in cumulative trading volume, $25 billion in loans, and $35 million in incentives.

“Our north star has always been high quality data informing high quality risk management. Crypto is among the most volatile asset classes today,” said Chaos Labs founder and CEO Omer Goldberg.

“Yet, most DeFi applications remain static, relying on stale parameters that take hours or days to update. The future of decentralized finance needs modern, dynamic data infrastructure,” said Goldberg.

He indicated that Chaos Labs is developing new products that integrate offchain market data, observability, and alerting with dynamic risk adjustments, seeking to enhance their existing platform to allow for real-time updates based on current market conditions.