Crypto security start-up Chaos Labs has raised $20m in seed funding led by Galaxy and PayPal.
The funding round saw participation from 23 firms and six angel investors including Coinbase Ventures, Polygon, Avalanche, OpenSea UniSwap and Balaji Srinivasan.
The Israeli start up provides protocols with custom and automated economic security tooling that verifies a protocol's durability and stability in any market condition.
Since being founded in October 2021, Chaos Labs has partnered with major defi customers, including Aave, Chainlink, Uniswap, BENQI, and Osmosis, to secure and optimise the protocols against manipulation and black swan market events, while also offering capital optimisation recommendations.
Chaos Labs CEO Omer Goldberg said “There is a high demand for our product, and we don't have enough people. We will try to recruit about 30 more people by the end of the year.
“As the world moves from the opacities of traditional finance to a more open defi system, financial risk management must advance accordingly, we believe that every defi protocol must regularly conduct robust risk testing to verify and validate that their economic system is secure against hackers and unanticipated volatility.”
Chaos Labs’ seed funding comes after a year of crypto hacks, collapses, and exploits, including the infamous Mango Markets hack where Avraham Eisenberg took advantage of weaknesses in the crypto trading platform to walk away with $116m in assets.
Goldberg claims Chaos Lab’s software could have “100%” prevented Eisenberg’s attack.
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