The capital surge arrives as Chaos Labs, established in 2021, aims to broaden its platform, which is tailored to meet the increasing demand for automated risk management in decentralized finance (DeFi).
- Chaos Labs is recognized for its on-chain risk management tools, catering to the rising need for these services in decentralized finance (DeFi).
- Haun Ventures, a venture capital firm, led the fundraising effort.
Chaos Labs, a prominent New York-based crypto startup recognized for its cutting-edge on-chain risk management tools, has secured $55 million in a Series A funding round led by Haun Ventures.
This substantial investment comes as Chaos Labs, founded in 2021, gears up to expand its platform, which is purpose-built to meet the rising demand for automated risk management in decentralized finance (DeFi).
Over the past year, the company has seen explosive growth, tripling its customer base and helping over 20 protocols—including industry leaders like Aave, GMX, and Jupiter—enhance the security, monitoring, and scalability of their products.
The funding round drew a mix of seasoned and new investors, including F-Prime Capital, Slow Ventures, and Spartan Capital, alongside major players such as Lightspeed Venture Partners, Galaxy Ventures, and PayPal Ventures. Angel investors like Solana’s Anatoly Yakovenko and Phantom’s Francesco Agosti also participated, underscoring strong confidence in Chaos Labs’ mission.
As DeFi protocols continue to gain traction, their vulnerability to market volatility and risk remains a critical concern, especially for investors transitioning from traditional finance. Chaos Labs is positioning itself as a key solution provider, offering real-time data and sophisticated risk assessment tools—areas where DeFi often lags behind centralized finance.
DeFi platforms, such as on-chain lending markets and futures exchanges, face similar risk challenges as legacy financial services. When market conditions shift, these platforms must adjust parameters like collateral requirements and liquidation ratios to protect users.
However, in the decentralized blockchain ecosystem, risk management is often outsourced to companies or individuals, leading to potential errors, delays, and concerns about centralization.
“Today, all DeFi on-chain applications are essentially static, with outdated parameter configurations,” said Omer Goldberg, Founder and CEO of Chaos Labs. “On average, it takes 72 to 96 hours from the moment a risk manager identifies necessary changes to when they are implemented on-chain.”
Chaos Labs aims to revolutionize this process with its suite of tools, including dashboards, real-time data oracles, and risk alerts, enabling DeFi platforms to become more responsive to market changes and less prone to human error.