Chaos Labs Raises $55 Million Led by Haun Ventures to Boost Onchain Economic Security

Chaos Labs Raises $55 Million Led by Haun Ventures to Boost Onchain Economic Security

By Press Release, 20 August 2024

Chaos Labs, the industry leader in onchain risk management, today announced a $55 million Series A funding round led by Haun Ventures. This significant investment, aimed at scaling onchain economic security, attracted prominent new investors including F-Prime Capital, Slow Ventures, Spartan Capital, and more. They join an impressive roster of existing backers such as Lightspeed Venture Partners, Galaxy Ventures, Wintermute Ventures, PayPal Ventures, General Catalyst, Bessemer Venture Partners, and Coinbase Ventures. The round also saw participation from strategic angel investors, including Kevin Weil (OpenAI CPO), Michael Shaulov (Fireblocks CEO), Anatoly Yakovenko (Solana CEO), Francesco Agosti (Phantom CTO), and Anton Katz (Talos CEO).

Chaos Labs plans to leverage this funding to accelerate new product development and scale its cutting-edge risk management platform. The platform currently features enhanced observability tooling, innovative risk oracles, and real-time parameter recommendations.

This Series A investment is the first led by Diogo Mónica, General Partner at Haun Ventures. Mónica shared his enthusiasm for the investment: "Chaos Labs has emerged as an industry leader; their rapid growth, despite volatile markets, speaks volumes about their product-market fit, brand strength, and product quality. As onchain finance matures to compete with its centralized counterparts, the need for world-class risk management tools, designed from the ground up for the blockchain stack, is both clear and intuitive."

Mónica added, "Meeting Omer and witnessing his intense focus and vision strengthened our conviction on Chaos Labs. We're excited to partner with Chaos Labs as they continue to safeguard and grow the industry."

In the past year, Chaos Labs tripled its customer base. Today, more than 20 protocols including Aave, GMX, and Jupiter, rely on Chaos Labs to secure, monitor, and grow their products. Chaos Labs technology has secured $860B in cumulative trading volume, $25B in loans, and $35M in incentives.

For Chaos Labs, this growth is part of a grander vision: to empower decentralized applications with contextualized data to improve risk management, and economic security posture, while increasing capital efficiency and achieving performance parity with their centralized counterparts.

"We're thrilled to partner with Haun Ventures and double down with existing investors on our expanded vision for Chaos Labs," said Omer Goldberg, Founder and CEO at Chaos Labs. "Our north star has always been high quality data informing high quality risk management. Crypto is among the most volatile asset classes today. Yet, most DeFi applications remain static, relying on stale parameters that take hours or days to update. The future of decentralized finance needs modern, dynamic data infrastructure."

Many companies attempting to solve different parts of the blockchain data stack, such as industry giants Chainlink and LayerZero, have tapped Chaos Labs for their own research and development and risk management needs, often referencing assessments published by Chaos Labs in their benchmarks and product announcements.

These opportunities have validated the team's thesis that data requirements are becoming more sophisticated and holistic as blockchains capture flow from traditional exchanges and applications demand dynamic data infrastructure.

"Offchain data and onchain risk are inextricably linked," said Goldberg. "Market context, including volatility, liquidity depth, and bid-ask spread, is essential for real-time adjustments in high-frequency trading applications."

Goldberg expanded on this vision: "Chaos Labs is building new products which merge previously siloed offchain market data, observability, and alerting with dynamic risk parameter adjustments. This new technology will build upon our existing stack and enable instant updates which reflect current market conditions."

Decentralized finance applications currently depend on manual risk management and isolated analysis of data feed performance to ensure platform integrity in variable market conditions. By comparison, centralized exchanges, including the Chicago Options Exchange utilize risk engines built directly on top of market data feeds.

"We're catching up to our CeFi counterparts and this is where it's going," said Goldberg.

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