Payments giant PayPal and investment management firm Galaxy have joined forces 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 from external attacks and risks with an automated risk management platform. The platform does this by offering agent-based and scenario-based modeling, which in turn helps protect protocols from economic vulnerabilities and market manipulation events.
The seed funding aims to help Chaos Labs further automate risk optimization on the network.
1/ We are pleased to announce that we have secured $20 million in seed funding led by @galaxyhq And @PayPal to automate network risk optimization! pic.twitter.com/gVnarbmFSk
— Omer (@omeragoldberg) February 21, 2023
The funding round was attended by 23 organizations and six business angels. Notable names among the lots include Coinbase Ventures, Polygon, Avalanche, OpenSea UniSwap, and Balaji Srinivasan.
According to Chaos Labs CEO and Founder Omer Goldberg, there is a need to modernize financial risk management with decentralized finance (DeFi) ecosystems. He added:
“We believe that every DeFi protocol should regularly conduct robust risk testing to verify and validate that its economic system is safe from hackers and unanticipated volatility.”
The official website states that the Chaos Labs risk suite can help secure DeFi protocols through risk optimization and capital efficiency, simplified risk assessment, and simplified risk assessment.
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PayPal’s interest in the crypto ecosystem was sparked when it was discovered that a significant portion of its financial commitments were related to the cryptocurrencies offered to its customers.
As Cryptooshala reported, by the end of 2022, PayPal had a total of $604 million in various cryptocurrencies, including Bitcoin (BTC), Ether (ETH), Litecoin (LTC) and Bitcoin Cash (BCH). The information was discovered in an annual report filed with the US Securities and Exchange Commission on February 10.
Of the total, Bitcoin accounts for $291 million in the firm’s asset structure, while $250 million is held in ETH. The remaining $63 million includes Litecoin and Bitcoin Cash combined.
Credit : cointelegraph.com
