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August 15, 2024

Chaos Labs

By Diogo Mónica

Today, I'm thrilled to announce my first investment at Haun Ventures: leading the Series A for Chaos Labs. This round sees participation from PayPal Ventures, Lightspeed Venture Partners (LSVP), Fidelity's F-Prime Capital, and Slow Ventures, as well as prominent tech executives such as OpenAI CPO Kevin Weil and Fireblocks CEO Michael Shaulov. This investment underscores our commitment to backing transformative technologies in the blockchain risk management space.

Onchain Finance, encompassing DeFi and new institutional entrants, has shown remarkable resilience during high volatility periods, in large part due to critical risk parameter choices by protocols. Chaos Labs' risk platform underpins some of the largest crypto protocols, like Aave, helping to secure managed assets during turbulent times.

Despite these achievements, three key challenges impede DeFi protocol maturity:

  1. Lack of actionable onchain risk information
  2. Low frequency of onchain risk data updates
  3. Inefficient processes for updating smart contract parameters

These shortcomings result in static onchain applications with stale risk configurations. Consequently, applications are reactive at best, compensating for lack of real-time updates with heightened fees and security buffers. This leads to suboptimal risk management and reduced capital efficiency.

Chaos Labs' Risk Oracles are designed to address these challenges, delivering high-granularity, real-time risk parameters onchain. By merging real-time observability, contextual market data, and actionable risk parameter updates, these oracles hold the potential to significantly reduce the risk of losses that have plagued the industry. 

We believe that the future of Onchain Finance is real-time, and that Chaos Labs is uniquely positioned to realize this vision. Already integrated among some of the world's largest crypto protocols across verticals such as borrow/lend, derivatives, restaking, and stablecoins, Chaos Labs is poised to transform onchain risk management.

Leading their Series A aligns with our vision for a more secure and robust onchain ecosystem, and I couldn’t be more excited to work closely with Omer and the team on bringing his vision to life. His dedication and expertise are pivotal in driving Chaos Labs forward and in turn, propelling the maturation of the Onchain Finance industry. 

If you are passionate about shaping the onchain future, and are excited about the work Chaos Labs is doing, consider joining their team. Check out their open roles here: Chaos Labs Careers.

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Diogo Mónica
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