The PayPal Foundation co-funds Chaos Labs with $20 million in seed funding
Chaos Labs, a New York-based cloud platform for securing blockchains and protocols, raised $20 million in seed funding from PayPal and Galaxy Investment Management.
With its automated risk management platform, Chaos Labs protects crypto protocols against external exploits and risks. By offering agent- and scenario-based simulations, the platform helps secure protocols against economic vulnerabilities and market manipulation.
The seed funding will assist Chaos Labs in automating on-chain risk optimization. Participating in the funding round were 23 organizations and six angel investors. Among the notable names are Coinbase Ventures, Polygon, Avalanche, OpenSea UniSwap, and Balaji Srinivasan.
According to Omer Goldberg, CEO and Founder of Chaos Labs, there is a need to improve financial risk management for decentralized finance (DeFi) ecosystems. He went on to say:
“We believe that every DeFi protocol should conduct rigorous risk testing on a regular basis to verify and validate that their economic system is secure against hackers and unexpected volatility” – Omer Goldberg.
According to the official website, Chaos Labs’ risk suite can help protect DeFi protocols by optimizing risk and capital efficiency, streamlining risk assessments, and streamlining risk assessments.
PayPal’s interest in the crypto ecosystem was highlighted when it was discovered that a significant portion of its financial liabilities were held in cryptocurrencies offered to its customers.
According to Cointelegraph, by the end of 2022, PayPal will have a total of $604 million in various cryptocurrencies such as Bitcoin, Ether, Litecoin, and Bitcoin Cash. The information was discovered in the annual report filed with the US Securities and Exchange Commission on February 10.
Bitcoin accounts for $291 million of the firm’s assets, with ETH accounting for $250 million. Litecoin and Bitcoin Cash make up the remaining $63 million.
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