Chaos Labs has successfully closed a $55 million Series A funding round. The round was led by Haun Ventures, with participation from PayPal, Lightspeed, Galaxy Ventures, and Wintermute.
Investment in Chaos Labs
New investors backing the round also include F-Prime Capital, Slow Ventures, and The Spartan Group. The startup, based in New York City, focuses on securing blockchains for decentralized finance (DeFi) protocols, including Aave, GMX, and Jupiter.
Chaos Labs' Technologies and Achievements
Chaos Labs offers contextualized data for risk management and economic security, helping protocols identify vulnerabilities and prevent exploits through simulation-based assessments. According to the company, its technology has secured $860 billion in cumulative trading volume, $25 billion in loans, and $35 million in incentives for over 20 crypto protocols.
Security Challenges in DeFi
DeFi protocols continue to face significant security challenges, with hackers exploiting various vulnerabilities. By mid-2024, nearly $1.4 billion had been stolen from DeFi platforms, according to data from cybersecurity firm Cyvers. In the second quarter of 2024, access control breaches, primarily through phishing attacks, were responsible for the majority of stolen funds, totaling around $490 million, significantly higher than the less than $70 million lost to smart contract exploits during the same period. Cyvers' report notes that despite swift actions by DeFi protocols to freeze compromised contracts, the risk of exploits remains high as hackers continue to find new vulnerabilities, with cross-chain bridges being particularly targeted.
Chaos Labs plans to use the funds to develop new products that will provide real-time updates to onchain applications based on market conditions.
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