Chaos Labs Raises $55M to Revolutionize DeFi Risk Management

Chaos Labs Raises $55M to Revolutionize DeFi Risk Management

  • Chaos Labs secures $55M in Series A funding, led by Haun Ventures, to expand its DeFi risk management tools and platform.
  • Chaos Labs triples its customer base in a year, now serving 20+ protocols like Aave, GMX, and Jupiter for secure DeFi operations.
  • Chaos Labs automates risk management, helping DeFi platforms like Aave adapt quickly to market shifts, minimizing potential risks.

Based in New York, Chaos Labs, a crypto firm that has built on-chain risk management solutions closed $55 million for an oversubscribed Series A financing. Led by Haun Ventures, the investment underlines the rising demand for automated risk management in DeFi. Chaos Labs was founded in 2021 with the goal of growing the platform by solving the high volatility and coordination risk issues that DeFi protocols encounter.

Significant Growth and Investor Confidence

Chaos Labs increased their customer base in the last year while growing by double in size. Chaos Labs is currently securing well over 20 protocols like GMX, Jupiter and Aave by looking after their goods. The fresh capital could potentially grant the startup even better capabilities across its risk assessment and real-time data tools.

Furthermore, the investment round drew in both new and current investors, demonstrating their strong belief in Chaos Labs’ goal. Among the notable players are Spartan Capital, Slow Ventures, and F-Prime Capital. 

The startup was also supported by bigger names including PayPal Ventures, Galaxy Ventures, and Lightspeed Venture Partners. Additional backing was given by angel investors like Francesco Agosti of Phantom and Anatoly Yakovenko of Solana.

Addressing DeFi’s Risk Challenges

DeFi protocols are still gaining traction, but they are still susceptible to changes in the market. As a result, traditional investors’ concerns over risk management in the DeFi market are growing. Chaos Labs provides automated risk management solutions, which are frequently absent from DeFi, in an effort to address these issues.

Moreover, DeFi platforms are subject to the same risk considerations as conventional financial services. They have to adjust factors such as collateral requirements and liquidation ratios when market conditions change. But because blockchains are decentralized, it frequently takes longer to implement these modifications, which might put consumers in danger.

Automating Risk Management for a Safer DeFi

In order to address these problems, Chaos Labs automates important risk management procedures. By doing this, the business hopes to lower the possibility of human error and increase the responsiveness of DeFi platforms to changes in the market. Today’s DeFi apps are frequently “static and have stale parameter configuration,” which causes delays in risk mitigation, according to Omer Goldberg, the founder and CEO of Chaos Labs.

With its vital tools to protect the DeFi ecosystem from its inherent hazards, Chaos Labs is establishing itself as a major player in the field. The business is well-positioned to greatly improve the security and effectiveness of DeFi protocols thanks to its recent financing.

The post Chaos Labs Raises $55M to Revolutionize DeFi Risk Management appeared first on Crypto News Land.


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