This past week, Chaos Labs, an on-chain risk management provider, announced a $55 million Series A funding round led by Haun Ventures. The funding round attracted F-Prime Capital, Slow Ventures and Spartan Capital. They join Lightspeed Venture Partners, Galaxy Ventures, Wintermute Ventures, PayPal Ventures, General Catalyst, Bessemer Venture Partners, and Coinbase Ventures. Participating angel investors include 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 risk management platform. That platform currently features enhanced observability tooling, innovative risk oracles, and real-time parameter recommendations.
“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,” Haun Ventures general partner Diogo Mónica said. “As on-chain 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 clear and intuitive.”
“Meeting Omer (Chaos Labs founder Goldberg) and witnessing his intense focus and vision strengthened our conviction in 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.
This growth is part of Chaos Labs’ 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 Goldberg, founder and CEO at Chaos Labs. “Our North Star has always been high-quality data informing high-quality risk management. Cryptocurrency 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 have tapped Chaos Labs for their research and development and risk management needs. They often reference assessments published by the company 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.
“Off-chain data and on-chain 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.”
“(We’re) building new products which merge previously siloed off-chain 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 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 with our CeFi counterparts, and this is where it’s going,” said Goldberg.