Research

Institutional RWA: Powering Risk Infrastructure for Horizon

Chaos Labs is collaborating with Aave Labs to build the risk infrastructure for Horizon, an institutional DeFi platform that unlocks stablecoin liquidity for tokenized assets such as money market funds and U.S. Treasuries.

DeFi Rate Swaps: Building Risk Infrastructure for Pendle Boros

We worked with the Pendle team on Boros, a new DeFi primitive that brings funding rate trading onchain with leverage and capital efficiency. Funding rates have never been tradeable in DeFi, requiring us to develop novel risk management systems tailored to an entirely new market structure.

Risk Oracles: Real-Time Risk Management for DeFi

Risk oracles represent the natural evolution of oracle infrastructure, combining our expertise in risk management with protocol-level automation.

The Modern Role of Crypto Oracles: From Price Messengers to Intelligent Feeds

The recent oracle incident involving the deUSD Euler market reignited a critical debate: What’s the purpose of an oracle, and where should its responsibilities begin and end?

Introducing Pendle PT Risk Oracle

Chaos Labs has developed the Principal Token Risk Oracle, a purpose-built framework that reimagines how PTs are priced and risk-managed in DeFi protocols such as Aave. This unlocks a new paradigm of capital-efficient, resilient lending infrastructure.

Chaos Labs Smart Value Recapture (SVR) Monitoring Platform

Chaos Labs is pleased to announce the launch of the Smart Value Recapture (SVR) monitoring platform, enabling granular monitoring of SVR liquidation performance within the Aave Protocol.

Ethena Integrates Edge Proof of Reserves

Ethena has officially integrated Edge Proof of Reserves (PoR). With this integration, reliable, independent reserve verification is now live for USDe—providing a higher-frequency, programmatic alternative to traditional attestations.

Pendle PT Risk Framework

Pendle v2 Mechanism Risk Assessment

Trusting Trust in the Age of AI

While resources are heavily invested in improving frontier models and optimizing prompts, the true challenge lies in how AI systems retrieve and rank information. Chaos Labs identifies the greatest risk in AI-generated misinformation infiltrating the data pipeline. If AI agents are unknowingly trained on manipulated or sybilled content, it becomes nearly impossible to trust their outputs. This vulnerability is exacerbated by unreliable document ranking systems, which prioritize popularity and commercial interests over accuracy. The Dead Internet Theory, which warns of a future where human-created content is drowned out by machine-generated noise, serves as a chilling reminder of what’s at stake if these systems are not carefully safeguarded.

Ostium Risk Report

Gearbox LT Methodology

This methodology proposes a framework to derive liquidation thresholds (LT) and liquidation bonuses (LB) specifically for LSTs and LRTs on Gearbox, which are assets closely related to ETH. These tokens are fundamentally priced on Gearbox based on their intrinsic value as receipt tokens representing underlying staked or restaked ETH, when withdrawals are enabled. However, during periods of significant market volatility, LSTs and LRTs may temporarily deviate from their fundamental ETH value in the open market due to factors such as liquidity constraints, market sentiment, and liquidation events.