PayPal, which has been heavily into the crypto sector for some time, continues to deepen its relationship with the digital assets industry. PayPal recently participated in a seed funding round for Chaos Labs, an on-chain risk optimizer. PayPal co-led the funding round with venture capital firm Galaxy in favor of this cloud-based platform. Both companies have jointly pledged $20 million (approximately Rs.160 million) to Chaos Labs.
As part of its services, Chaos Labs protects crypto protocols from exploits and risks. Its automated risk management platform protects DeFi protocols from market manipulation and economic vulnerabilities via an agent and scenario-based simulation, CoinTelegraph explained in a report.
“As the world moves from the opaqueness of traditional finance to a more open one DeFi systemthe financial risk management must be promoted accordingly. Every DeFi protocol must regularly conduct robust risk tests to verify and validate that its economic system is safe from hackers and unexpected volatility. We are working to solve this by infusing best-in-class security and risk practices into running simulations of millions of economic scenarios on-chain,” said Omer Goldberg, founder of Chaos Labs, in a statement.
Goldberg also further confirmed the development Twitter.
Six angel investors joined the other 23 organizations that placed equity in Chaos Labs in its seed funding. These companies include polygon, Coinbase VenturesAnd Open seaamong other.
The DeFi space has been infested hackers and scammers making the need for security solutions the need of the hour.
Citing a Chainalysis report, forbes said over $3 billion (about Rs. 31,080 crore) was stolen in 125 hacks last year.
Industry experts have regularly predicted that more nations will introduce legislation to regulate the crypto spacethe number of hacker attacks hitting the industry is likely to decrease.
As for PayPalThis investment reinforces its commitment to the digital assets industry.
The online payment intermediary recently secured permissions Launch crypto offerings in the European Union (EU) with Luxembourg as the entry point.
Last year, PayPal also appointed a special council to act as an advisor on digital currencies, cryptocurrencies, and so on Blockchain Technology.
The company also has started Cryptocurrency trading on the platform in the UK market.
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