PayPal co-leads $20M seed funding for on-chain risk optimizer Chaos Labs

Published at: Feb. 22, 2023

Payments giant PayPal and investment management firm Galaxy joined hands to raise $20 million in seed funding for Chaos Labs, a New York-based cloud platform for securing blockchains and protocols.

Chaos Labs protects crypto protocols against external exploits and risks with an automated risk management platform. The platform does this by offering agent- and scenario-based simulations, which in turn, helps secure protocols against economic vulnerabilities and market manipulation events.

The seed funding is aimed at helping Chaos Labs further automate on-chain risk optimization. 

1/ We are thrilled to announce we have secured $20M in seed funding led by @galaxyhq and @PayPal to automate on-chain risk optimization! pic.twitter.com/gVnarbmFSk

— omer (@omeragoldberg) February 21, 2023

The funding round saw participation from 23 organizations and six angel investors. Prominent names among the lot include Coinbase Ventures, Polygon, Avalanche, OpenSea UniSwap and Balaji Srinivasan.

According to Chaos Labs’ CEO and Founder, Omer Goldberg, there is a need to upgrade financial risk management catering to the decentralized finance (DeFi) ecosystems. He added:

“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.”

The official website states that Chaos Labs’ risk suite can help protect DeFi protocols through optimized risk and capital efficiency, streamlined risk assessments and streamlined risk assessments.

Related: MetaMask to allow users to purchase and transfer Ethereum via PayPal

PayPal’s interest in the crypto ecosystem was highlighted when it was found holding a significant part of its financial liabilities in cryptocurrencies offered to its customers.

As Cointelegraph reported, by the end of 2022, PayPal held a total of $604 million in various cryptocurrencies, including Bitcoin (BTC), Ether (ETH), Litecoin (LTC) and Bitcoin Cash (BCH). The information was found on the annual report filed with the United States Securities and Exchange Commission on Feb. 10.

Out of the lot, Bitcoin accounts for $291 million in the firm’s asset breakdown, while $250 million is held in ETH. The remaining $63 million includes Litecoin and Bitcoin Cash combined.

Tags
Blockchain
Business
Investments
Paypal
Security
Angel Investments
Related Posts
The remaining steps to mainstream institutional investment
It has been said that you only get one chance to make a first impression. Perhaps the best example of this old adage is the cryptocurrency space. From exit scams and money laundering, to unaudited code and high carbon footprints, the crypto landscape has spent the better part of the past decade scrubbing itself of its infamous past. For many, the sanitizing of the decentralized ecosystem was inevitable — simply a matter of when, not if. This mindset hindered the sense of urgency that should have been on display and may have ultimately contributed to the skepticism exhibited by mainstream …
Adoption / May 29, 2021
Angel investors vs. venture capitalists
Angel investors and venture capitalists are two types of private investors who provide funding for early-stage and growth-stage companies. However, there are some key differences between them that we will cover in this article. Who are angel investors? High-net-worth individuals who invest in companies at an early stage in exchange for equity in the business are known as angel investors. They frequently invest their own funds and take a more active approach to investment, offering advice and mentoring to the businesses they support. The well-known angel investors in the crypto world include: Roger Ver — He is known as “Bitcoin …
Adoption / Feb. 15, 2023
Galaxy Interactive raises another $325M fund aimed at metaverse and next-gen games
Galaxy Interactive, a venture capital firm focused on next-generation interactive technology, has announced it has raised $325 million for its second fund from 70 different investors. The fund is focused on virtual and augmented reality, artificial intelligence and blockchain-based games. In a Tuesday announcement, Galaxy Digital, the majority owner of Galaxy Interactive, stated that $150 million from the fund has already been allocated to new portfolio companies, including Republic, 1047 Games, Elodie, Roar, Art Blocks and Masterworks, with other additional investments to be announced in coming months. Established in 2018 by general partners Sam Englebardt and Richard Kim, the company …
Technology / Oct. 20, 2021
12 of the biggest enterprise blockchain players of 2020
Enterprise blockchain started gaining traction in 2017 shortly after Bitcoin had reached its all-time high of nearly $20,000. Since then, enterprise blockchain has mainly been defined by private blockchain networks used by businesses for things such as supply chain management. The enterprise blockchain space has changed quite a bit since 2017. For instance, 2020 has brought in a number of enterprise blockchain use cases that leverage public networks rather than private ones. The COVID-19 pandemic has also driven many companies, both large and small, to use blockchain for guaranteeing proof-of-health or to revive tourism. Finally, some blockchain companies this year …
Technology / Dec. 28, 2020
Demystifying the business imperatives of the Metaverse
In a previous article, I discussed the evolution of Web3 economies and current volatility, focusing on the participatory nature of Web3, which is the foundational technology enabling the creator economy. The term “metaverse” — meta and universe — often describes the anticipated future iteration or evolution of the internet powered by Web3 technologies like blockchain and decentralized resource distribution and consumption principles. Although the focus has often been on metaverse modalities such as augmented reality (AR), virtual reality (VR), gaming, Second Life, avatars and so forth, in my view, these modalities represent an interesting evolution or shift from the digital …
Adoption / April 30, 2022