Chaos Labs
Chaos Labs is a financial technology company specializing in risk management and financial intelligence solutions for decentralized finance (DeFi) and traditional finance sectors. Founded in 2021 by Omer Goldberg, Chaos Labs develops AI-driven risk management systems, oracles, and simulation tools designed to enhance capital efficiency and protect against financial vulnerabilities across various crypto platforms. The company is headquartered in New York City, New York, with additional operations in Tel Aviv, Israel. [1]
Overview
Chaos Labs is a financial technology company founded in 2021 by Omer Goldberg. Headquartered in New York City with additional operations in Tel Aviv, Israel, the company develops risk management and financial intelligence infrastructure for decentralized finance (DeFi) and traditional financial markets.
Its products include Chaos AI, risk management and analytics tools, and oracle infrastructure used for data validation and market analysis. The company has provided risk management services to protocols including Aave and GMX. From 2022 to 2026, it served as a risk service provider for Aave.
Chaos Labs has raised funding through multiple investment rounds, including seed financing led by PayPal Ventures and a Series A round led by Haun Ventures. Its investors have included Andreessen Horowitz, Cyberstarts VC, and Polychain Capital.[1] [2] [3] [4] [5] [6]
History
The company focuses on building AI-powered systems that help financial protocols improve capital efficiency, monitor market conditions, and mitigate risks. Its infrastructure includes simulation frameworks, analytics tools, and oracle systems that provide real-time data validation and risk assessment capabilities. These products are used by major DeFi protocols to support decision-making and maintain market stability.
Among its core offerings are Chaos AI, an institutional-grade financial intelligence platform; risk management and analytics solutions that enable parameter optimization and stress testing; and Chaos Oracles, a data infrastructure designed to identify anomalies, detect manipulation, and provide secure market information. Through these systems, Chaos Labs has supported billions of dollars in on-chain activity across multiple platforms.
Since its establishment, the company has expanded its role within the digital asset ecosystem and has provided risk management services to protocols including Aave and GMX. Between 2022 and 2026, Chaos Labs served as Aave's primary risk manager, overseeing areas such as loan pricing, liquidation parameters, and interest rate modeling. In 2026, the company concluded its engagement with the protocol following governance discussions regarding funding and the increasing scope of work associated with Aave V4.
Exit from Aave Partnership
In April 2026, Chaos Labs exited its role as the primary risk manager for Aave, a prominent DeFi lending protocol. The departure was primarily due to a governance dispute over the funding and the increased workload demanded by Aave's upcoming V4 upgrade. Chaos Labs had managed Aave's risk parameters since November 2022, playing a crucial role in pricing loans, managing liquidation thresholds, and modeling interest rate mechanisms. [4] [5]
Despite a proposed budget increase to $5 million annually from Aave, Chaos Labs indicated that this funding was insufficient given their operating losses and the expanded scope required for V4 integrations. Comparably, traditional financial institutions allocate 6–10% of revenue to risk management, whereas Aave's proposal was about 3.5%. [4]
Products and Services
Chaos Labs offers a range of products focused on providing financial intelligence and risk management tools, including:
- Chaos AI: A real-time, institutional-grade financial intelligence platform that provides risk insights and data verification. It is built on proprietary data and risk infrastructure to support protocols like Aave and GMX in making billion-dollar risk assessments. [3]
- Risk Management & Analytics: This solution provides comprehensive risk intelligence, including end-to-end simulations, model-based parameter tuning, and real-time dashboards. These tools enable clients to mitigate risk, enhance solvency, and optimize capital efficiency. [3]
- Chaos Oracles: A next-generation oracle stack that treats data as a risk variable. It validates in real time, detects manipulation, and triggers circuit breakers to deliver secure price feeds and risk assessments. [3]
These products are heavily utilized by leading DeFi protocols to enhance decision-making, manage market risks, and improve investment strategies.
Funding and Investors
Since its inception, Chaos Labs has raised a total of 20 million in seed funding, led by PayPal Ventures, and later raised $55 million in a Series A round, with Haun Ventures as the leading investor. These funds have supported the development of its advanced risk management tools and expansion of its team. [6]
The investment backing includes significant names such as Andreessen Horowitz, Cyberstarts VC, and Polychain Capital, among others. This strong financial support underscores Chaos Labs' influential position in the DeFi ecosystem and its capacity for extensive R&D and operational scaling. [2]
Strategic Vision and Impact
Chaos Labs aims to bridge the gap between traditional and decentralized financial systems by developing tools that provide clarity and risk mitigation strategies in an industry characterized by rapid changes and significant volatility. The company focuses on enabling real-time market intelligence and building reliable infrastructures that can preemptively address economic vulnerabilities and maximize capital efficiency. [3]
Looking forward, Chaos Labs positions itself as a vital component of the financial markets' backbone, offering comprehensive market infrastructure powered by sophisticated AI and risk data integration tools. By maintaining its commitment to innovation and security, Chaos Labs continues to support the scalability and accessibility of financial tools for a diverse range of stakeholders in the crypto and DeFi sectors. [2]
