As part of its services, Chaos Labs prevents crypto protocols against exploits and risks.
For PayPal, this investment will strengthen its involvement with the digital assets industry
Photo Credit: PayPal
PayPal, which has been betting big on the crypto sector for a while now, continues to deepen its relationship with the digital assets industry. PayPal has recently participated in a seed funding round for Chaos Labs, which is an on-chain risk optimiser. PayPal has co-led the funding round with venture capital firm Galaxy in favour of this cloud-based platform. Both the firms have collectively pledged $20 million (roughly Rs. 160 crore) towards Chaos Labs.
As part of its services, Chaos Labs prevents crypto protocols against exploits and risks. Its automated risk management platform secures DeFi protocols against market manipulation and economic vulnerabilities via an agent-and-scenario-based simulations, CoinTelegraph explained in a report.
"As the world moves from the opacities of traditional finance to a more open DeFi system, financial risk management must advance accordingly. Every DeFi protocol must regularly conduct robust risk testing to verify and validate that their economic system is secure against hackers and unanticipated volatility. We're working to solve for this by bringing world-class security and risk practices in running simulations of millions of economic scenarios on-chain," Omer Goldberg, the founder of Chaos Labs said in a statement.
Goldberg also confirmed the development on Twitter.
Six angel investors joined the other 23 organisations that poured capital into Chaos Labs in its seed funding. These firms include Polygon, Coinbase Ventures, and OpenSea, among others.
The DeFi space has been infested with hackers and scammers which makes the need for security solutions the need of the hour.
Citing a Chainalysis report, Forbes said that last year that over $3 billion (roughly Rs. 31,080 crore) was stolen in 125 hacks.
Industry experts have regularly predicted that as and when more nations introduce laws to govern the crypto space, the number of hack attacks hitting the industry are likely to go down.
As for PayPal, this investment strengthens its involvement with the digital assets industry.
The online payments facilitator recently secured permissions to start crypto offerings in the European Union (EU) with Luxembourg being its entry point.
Last year, PayPal had also appointed a special council to act as its advisory about digital currencies, cryptocurrencies, as well as blockchain technology.
The company has also launched cryptocurrency trading on the platform in the United Kingdom market.
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