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Israeli Startup Chaos Labs Revolutionizes Onchain Risk Management for Crypto

On-chain risk management is a critical aspect of decentralized finance (DeFi) that involves using blockchain data and smart contracts to assess, monitor, and mitigate risks within DeFi protocols.

Chaos Labs

Chaos Labs team; Image by The PhotoSet

Chaos Labs is an Israeli startup that offers services in onchain risk management for cryptocurrencies. The firm raised $55 million in a Series A funding round led by Haun Ventures. 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.

On-chain risk management is a critical aspect of decentralized finance (DeFi) that involves using blockchain data and smart contracts to assess, monitor, and mitigate risks within DeFi protocols.

DeFi protocols are inherently complex, involving multiple interconnected smart contracts and various assets. This complexity increases the potential for vulnerabilities and exploits. The cryptocurrency market is highly volatile, which can lead to rapid changes in asset prices and liquidity. Effective risk management is essential to protect user funds. Unlike traditional finance, DeFi lacks centralized intermediaries. This means that protocols must rely on automated mechanisms to manage risks.

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Founded in 2021 by CEO Omer Goldberg Chaos Labs is pioneering automated, on-chain economic security systems for DeFi. The company’s Risk Platform provides comprehensive economic security for crypto protocols through advanced monitoring, real-time simulations, and cutting-edge Risk Oracles. Chaos Labs enables protocols to verify stability across all market conditions, merging offchain observability with onchain risk parameter adjustments. This empowers DeFi applications to adapt instantly to market volatility, allowing teams to monitor health, execute proactive changes, protect user funds, and optimize capital efficiency. Backed by leading venture capital firms, Chaos Labs continues to set new standards for security and responsiveness in onchain finance.

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.

“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.”

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