Galaxy investment management firm and payments giant PayPal have co-led a $20 million early financing for Chaos Labs, a New York-based cloud platform for safeguarding blockchains and protocols.
Chaos Labs guards against dangers and external attacks for cryptographic protocols via an automated risk management platform. By providing agent- and scenario-based simulations, the platform assists in protecting protocols against economic vulnerabilities and market manipulation incidents.
The initial money will aid Chaos Labs in automating on-chain risk optimization even further.
Six angel investors and 23 organizations took part in the investment round. Within the group are well-known companies like Balaji Srinivasan, Polygon, Avalanche, OpenSea UniSwap, and Coinbase Ventures.
Omer Goldberg, the founder, and CEO of Chaos Labs, contends that modern financial risk management is necessary to support the decentralized finance (DeFi) ecosystems. Added him:
“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.”
According to the official website, the risk suite from Chaos Labs may assist safeguard DeFi protocols via improved risk and capital efficiency, simplified risk assessments, and simplified risk assessments.
When it was discovered that PayPal was keeping a significant portion of its financial obligations in cryptocurrencies that were made available to its users, the company’s involvement in the cryptocurrency ecosystem was brought to light.
PayPal possessed a total of $604 million in cryptocurrencies at the end of 2022, including Bitcoin BTC, Ether, Litecoin, and Bitcoin Cash. The details were located in the annual report submitted on February 10 to the Securities and Exchange Commission of the United States.
The asset breakdown for the company includes $250 million in ETH and $291 million in bitcoin. Bitcoin Cash and Litecoin are included in the remaining $63 million.