- PayPal and Galaxy collaborated to fund $20 million for Chaos Labs
- Chaos Labs is a cloud platform for adding a strong layer of defense for blockchains and protocols with a sophisticated automated risk management
- The project will help in the protection of DeFi protocols against highly advanced crypto hackers
Payments service: Palp and investment company Galaxy has raised seed funding of $20 million to back up Chaos Labs – a blockchain and protocol security cloud platform. The company is based in New York and will provide its services globally.
Chaos Labs’ sophisticated automated risk management platform helps protect crypto protocols from malicious exploits and user risks. It offers simulations for scenarios and agent types to secure protocols from manipulative tactics and destructive vulnerabilities that may disrupt the blockchain economy.
The funding saw 23 organizations and six angel investors on board; notable ones include Coinbase Ventures, UniSwap, Avalanche, Polygon, OpenSea, and Balaji Srinivasan. This will help Chaos Labs further automate on-chain risk optimization.
Chaos Labs’ risk suite helps protect DeFi protocols with optimized capital efficiency, rapid risk assessments, and on-the-spot breach detection. PayPal has expressed interest in the crypto ecosystem through its holdings of various cryptocurrencies offered to its customers as of 2022. The payments giant had $604 million invested – including Bitcoin, Ether, Bitcoin Cash, and Litecoin.
Chaos Labs to Frontline Against Crypto Hackers
The funds will also help Chaos Labs expand its reach and acquire new partners. With the growing number of protocols, users, and resources in the DeFi space, there is a need for tools from the security start-up, especially now that hackers have been more aggressive in the sector.
It’s not just DeFi protocols that benefit from this technology—hackers, phishers, bots, and other malicious actors continuously look for any vulnerabilities they can exploit. Chaos Labs’ platform aims to make its job more challenging by providing automated threat detection and mitigation capabilities.
One of the platform’s key features is its ability to detect “lurking threats” early on so that countermeasures can be taken in time. This feature helps protect users from bribery, fraud, market manipulation attempts, and other malicious activities. Furthermore, it can provide early warnings when critical protocol changes are being considered or implemented to help prevent potential disasters from happening.
In addition to securing crypto protocols against external exploits and risks, Chaos Labs also provides services for developing applications for blockchain-based systems such as smart contracts and decentralized autonomous organizations (DAOs).
The firm has yet to confirm what else it has in store. Still, it will include the foundations of a Web3 security protocol, including a developer-friendly API for scouring the blockchain networks fast, a dApp development toolkit, and a possible open-source protocol for issuing digital assets on the mainnet or testnets.
All these products aim to provide developers with all the necessary tools to create robust software systems on blockchains. Security is now more in demand against dangerous organizations such as the North Korean Lazarus Group. As such, Chaos Labs may turn the tide of blockchain security and bring a brighter tomorrow for investors and developers.
