Crypto Firm Secures $55 Million to Enhance DeFi Risk Management

Chaos Labs, a New York-based company specializing in risk management for decentralized finance (DeFi), has secured $55 million in an oversubscribed Series A funding round.

This investment, spearheaded by Haun Ventures, underscores the increasing need for sophisticated risk management tools in the DeFi sector.

Founded in 2021, Chaos Labs addresses issues of high volatility and coordination risks faced by DeFi protocols. The firm has recently doubled its size and expanded its client base, now supporting over 20 protocols such as GMX, Jupiter, and Aave. The new capital will bolster its risk assessment and data analysis capabilities.

The funding round saw participation from notable investors including Spartan Capital, Slow Ventures, F-Prime Capital, PayPal Ventures, Galaxy Ventures, and Lightspeed Venture Partners, as well as angel investors Francesco Agosti and Anatoly Yakovenko.

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DeFi platforms, while growing, continue to grapple with significant risk management issues similar to traditional finance. Chaos Labs is working to automate risk management processes to better handle market fluctuations and reduce human error, aiming to improve the efficiency and security of these platforms.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.