Investment of $55 million in blockchain-focused risk management venture Chaos Labs, spearheaded by Haun Ventures.
In the rapidly evolving world of decentralized finance (DeFi), ensuring security and risk management is paramount. Recognizing this need, Chaos Labs, an on-chain automated risk management platform, has recently secured $55 million in a Series A round.
The funding was led by Haun Ventures, with participation from F-Prime Capital, Slow Ventures, Spartan Capital, Lightspeed Venture Partners, Galaxy Ventures, PayPal Ventures, General Catalyst, Bessemer Venture Partners, and Coinbase Ventures.
Chaos Labs offers a suite of on-chain risk management tools designed specifically for the blockchain stack. These tools include dashboards, real-time data oracles, and risk alerts, all aimed at helping DeFi protocols optimize risk management and capital efficiency while safeguarding user funds.
The platform, which currently operates on Ethereum, plans to extend support to additional blockchains such as Terra, NEAR, and Polygon. This expansion aims to cover a broader DeFi ecosystem for greater adoption and security.
While the exact identities of the investors in this round are not publicly disclosed, the company's work is trusted by major DeFi protocols like Aave, GMX, dYdX, Venus, and Jupiter. This strong industry validation suggests significant investment or partnerships from these leading players.
According to Omer Goldberg, Founder and CEO at Chaos Labs, on-chain applications in DeFi are currently static with stale parameter configurations. Goldberg believes that Chaos Labs' technology can address these challenges by providing more comprehensive risk assessment tools.
The company claims its technology has secured a cumulative trading volume of $860 billion, $25 billion in loans, and $35 million in incentives. By automating risk management, enabling real-world simulations, and pioneering dynamic economic security technologies, Chaos Labs is helping DeFi protocols reduce vulnerabilities, speed up development, and maintain market competitiveness without compromising safety.
The crypto industry continues to face risks, both systemic and transactional. As the need for automated risk management tools grows, Chaos Labs plans to use the fresh capital to expand its platform. The decentralized finance sector, one of the fastest-growing segments of the crypto market, is attracting traditional finance companies due to the opportunity for real-world asset tokenization in the broader financial sector.
In February 2023, Chaos Labs had already raised $20 million in a seed round, which was led by Galaxy Venture Capital and PayPal Ventures. With this new Series A round, Chaos Labs is poised to accelerate its plans to provide advanced risk assessment tools, further advancing the risk infrastructure and capital efficiency of the DeFi sector.
