DeFi
RiskLayer Secures Funding to Improve DeFi Security Middleware on EigenLayer
Key points to remember
- RiskLayer funding will support the development of two AVSs on EigenLayer.
- The project aims to provide transparent risk assessments for DeFi protocols.
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RiskLayer, a protocol developed by economic risk management firm Chainrisk Labs, has announced the closing of a pre-seed funding round. The project aims to build security middleware for decentralized finance (DeFi) on EigenLayer.
The funding round, dubbed the “Builders Round,” was co-led by Antler and Momentum6, with participation from Wagmi Ventures, Hypotenuse Ventures and several angel investors. The amount raised was not disclosed.
RiskLayer proposes to develop two Active Validation Services (AVS) on EigenLayer to address DeFi economic security concerns. The first, Risk Oracle AVS, aims to provide data on DeFi risks using a “proof of risk” consensus. The second, Risk Rollup AVS, is designed to economically secure application-specific rollups created on RiskLayer.
Chainrisk Labs, the developers of RiskLayer, claims to have secured over $10 billion in assets under management to date. The company has provided economic risk management solutions for protocols such as Compound, Angle Labs, Gyroscope, and Ebisu Finance, as well as ecosystems such as Arbitrum and Fuel Network.
“Economic security is solved at the network level by EigenLayer. Gauntlet, Chaos Labs, Chainrisk Labs, and other risk managers have solved the problem at the DeFi level. At RiskLayer, we abstract economic security from the protocol layer and scale it to the application layer,” says Sudipan Sinha, CEO of Chainrisk Labs.
The project’s focus on economic security in DeFi comes as the sector continues to grapple with risks and vulnerabilities. RiskLayer’s approach to commercializing risk as a metric aims to provide a more transparent risk assessment for DeFi protocols and users.
RiskLayer plans to use the newly obtained funds to accelerate the development of its AVS infrastructure and prepare for an upcoming pre-staking launch. As the project progresses, it may face challenges in balancing the principles of decentralization with the provision of centralized risk assessment services.
Funding for projects like RiskLayer reflects ongoing efforts to address security concerns in the DeFi space. As these solutions develop, their impact on DeFi adoption and overall market stability will be closely monitored by industry participants and regulators.
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