- Summary:
- Chaos Labs is setting up a system that helps identify DeFi security vulnerabilities and develop measures to protect DeFi platforms.
Chaos Labs, a leading provider of automated economic security solutions for crypto protocols, has raised $20 million in seed funding. Galaxy and PayPal Venture, the VC arm of global payments processing giant PayPal, led the round. Coinbase, Uniswap, Lightspeed, Bessemer, Hashkey were among the other institutional contributors. In addition, there were six angel investors. Chaos Labs plans to use the funds to develop new services and increase the variety of security and risk management products it offers.
Chaos Labs and its pursuit of DeFi security
Over the past year, the DeFi market has lost more than $2 billion due to a surge in the number of exploits involving crypto assets. Therefore, it is now more crucial than ever to safeguard crypto platforms from vulnerabilities that can otherwise undermine entire economic systems. Chaos Labs’ automated risk management technology safeguards crypto protocols from external attacks.
The top-tier security services offered by Chaos Labs’ automated crypto risk management platform include elaborate agent-and-scenario-based simulations. The firm is focused on DeFi and promises to deliver best-in-class security and risk procedures to on-chains economic scenarios using millions of simulations.
Chaos Labs says it can help developers who are experimenting with new systems and cash flows assess the risks associated with market fluctuations. In addition, it can also detail how those risks may affect the stability of their protocols. The company’s simulation engine helps protocol teams in strategically allocating incentive expenditure to maximise their return on investment on reduced budgets, hence prolonging their runway in volatile markets.
In addition, the scenario simulation engine at Chaos Labs may re-create specific assault plans to evaluate their viability and profitability. Not only, that, but the system can also recommend countermeasures to be taken in reaction to any identified risks. Investment in Chaos Labs by PayPal demonstrates not only the strength of its security architecture, but also the allure of DeFi to traditional financial institutions.