PayPal co-leads $20M seed funding for on-chain risk optimizer Chaos Labs

cointelegraph.com:

Payments giant PayPal and investment management firm Galaxy joined hands to raise $20 million in seed funding for Chaos Labs, a New York-based cloud platform for securing blockchains and protocols.

Chaos Labs protects crypto protocols against external exploits and risks with an automated risk management platform. The platform does this by offering agent- and scenario-based simulations, which in turn, helps secure protocols against economic vulnerabilities and market manipulation events.

The seed funding is aimed at helping Chaos Labs further automate on-chain risk optimization. 

1/ We are thrilled to announce we have secured $20M in seed funding led by @galaxyhq and @PayPal to automate on-chain risk optimization! pic.twitter.com/gVnarbmFSk

The funding round saw participation from 23 organizations and six angel investors. Prominent names among the lot include Coinbase Ventures, Polygon, Avalanche, OpenSea UniSwap and Balaji Srinivasan.

According to Chaos Labs’ CEO and Founder, Omer Goldberg, there is a need to upgrade financial risk management catering to the decentralized finance (DeFi) ecosystems. He added:

The official website states that Chaos Labs’ risk suite can help protect DeFi protocols through optimized risk and capital efficiency, streamlined risk assessments and streamlined risk assessments.

Related: MetaMask to allow users to purchase and transfer Ethereum via PayPal

PayPal’s interest in the crypto ecosystem was highlighted when it was found holding a significant part of its financial liabilities in cryptocurrencies offered to its customers.

As Cointelegraph reported, by the end of 2022, PayPal held a total of $604 million in various cryptocurrencies, including Bitcoin (BTC), Ether (ETH), Litecoin (LTC) and