Key Points
- Chaos Labs raises $55 million in Series A funding led by Haun Ventures, signaling growing demand for automated risk management solutions in decentralized finance (DeFi).
- The company has experienced rapid growth, tripling its customer base in the past year and securing over $860 billion in cumulative trading volume for major DeFi protocols.
Funding Round Attracts Major Players
New York-based Chaos Labs, a leader in on-chain risk management, announced on August 15, 2024 that it has successfully closed a $55 million Series A funding round. The investment was spearheaded by Haun Ventures, with participation from both new and existing investors, including F-Prime Capital, Slow Ventures, Spartan Capital, Lightspeed Venture Partners, Galaxy Ventures, and PayPal Ventures.
The funding round also attracted strategic angel investors from across the tech and crypto sectors, including Kevin Weil (OpenAI CPO), Michael Shaulov (Fireblocks CEO), Anatoly Yakovenko (Solana CEO), Francesco Agosti (Phantom CTO), and Anton Katz (Talos CEO).
Addressing the Need for Dynamic Risk Management in DeFi
Founded in 2021, Chaos Labs has quickly established itself as a crucial player in the DeFi ecosystem. The platform offers advanced risk management tools, including enhanced observability, innovative risk oracles, and real-time parameter recommendations. These solutions are designed to address the unique challenges decentralized finance protocols face, which often need help with static risk parameters in a highly volatile market.
Omer Goldberg, Founder and CEO of Chaos Labs, emphasized the importance of dynamic risk management: “Crypto is among the most volatile asset classes today. 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.”
Rapid Growth and Industry Impact
Chaos Labs has experienced significant growth over the past year, tripling its customer base. As of August 15, more than 20 major protocols, including Aave, GMX, and Jupiter, rely on Chaos Labs’ technology to secure, monitor, and grow their products. The company’s solutions have secured an impressive $860 billion cumulative trading volume, $25 billion in loans, and $35 million in incentives.
The company’s impact extends beyond its direct customers, with industry giants like Chainlink and LayerZero tapping Chaos Labs for research, development, and risk management needs.
Future Vision: Bridging the Gap Between DeFi and CeFi
With this new funding, Chaos Labs plans to accelerate product development and scale its risk management platform. The company aims to empower decentralized applications with contextualized data to improve risk management and economic security while increasing capital efficiency.
Goldberg outlined the company’s expanded vision:
“Chaos Labs is building new products which merge previously siloed off-chain market data, observability, and alerting with dynamic risk parameter adjustments. This new technology will build upon our existing stack and enable instant updates that reflect current market conditions”.
As DeFi continues to mature and compete with centralized finance (CeFi), Chaos Labs is positioning itself at the forefront of bridging the gap between the two sectors regarding risk management capabilities. By providing tools that enable real-time adjustments based on market conditions, Chaos Labs is helping DeFi protocols achieve performance parity with their centralized counterparts.
The successful funding round and rapid growth of Chaos Labs underscore the increasing importance of sophisticated risk management in the evolving landscape of decentralized finance. As the industry continues to expand and attract more mainstream attention, companies like Chaos Labs will play a crucial role in ensuring the security and efficiency of on-chain financial systems.
