Ethereum Watch

RiskLayer, a protocol developed by economic risk management firm Chainrisk Labs, has announced the completion of a pre-seed funding round. The project aims to build decentralized finance (DeFi) security middleware on EigenLayer.

The funding round, termed a “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 Actively Validated Services (AVS) on EigenLayer to address DeFi economic security concerns. The first, Risk Oracle AVS, aims to provide DeFi risk data 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 behind RiskLayer, reports having secured over $10 billion in assets under management to date. The firm has provided economic risk management solutions for protocols including Compound, Angle Labs, Gyroscope, and Ebisu Finance, as well as ecosystems like Arbitrum and Fuel Network.

“Economic security is being solved at the network level by EigenLayer. Gauntlet, Chaos Labs, Chainrisk Labs and other risk managers that solved it at the DeFi level. At RiskLayer, we abstract economic security from the protocol layer and scale it to the application layer,” shares Chainrisk Labs CEO Sudipan Sinha.

The project’s focus on economic security in DeFi comes as the sector continues to grapple with risks and vulnerabilities. RiskLayer’s approach of commercializing risk as a metric aims to provide more transparent risk assessment for DeFi protocols and users.

RiskLayer plans to use the newly secured 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 decentralization principles with the provision of centralized risk assessment services.

The funding of 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 watched by industry participants and regulators alike.