Chaos Labs
Automated economic security system for crypto protocols
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Project Overview
Chaos Labs is an automated economic security system for crypto protocols that uses state-of-the-art monitoring and simulations. The company's goal is to increase crypto adoption by providing protocols with custom and automated economic security tools that verify a protocol's durability and stability in any market condition. Chaos Labs' tools enable core teams and community members to monitor protocol health and risks in real time, so they can make mainnet changes before a potential vulnerability is exploited. With Chaos Labs, teams can protect user funds from market-based attacks and optimize capital efficiency.
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Ethena extends the LayerZero OFT bridge pause and publishes proof of reserves confirming USDe’s collateralization ratio exceeds 100%
According to an official post on Ethena’s X account, due to the absence of a satisfactory root-cause analysis regarding the rsETH incident, Ethena has decided to extend the suspension period for its LayerZero OFT cross-chain bridge. Meanwhile, Ethena released its latest Proof of Reserves, independently verified by four third-party entities—Chainlink, Chaos Labs, LlamaRisk, and Harris & Trotter—confirming that USDe’s collateral coverage ratio remains above 100%. The verification results have been published on Ethena’s Transparency Page and Data Dashboard. Ethena stated it will continue monitoring the situation and provide updates as they become available.
Chaos Lab: WLFI Team Engages in Large-Scale Circular Lending, Collateral Utilization Approaches Cap
Risk management firm Chaos Labs tweeted that the World Liberty Finance (WLFI) team has recently significantly increased its borrowing activity on the Dolomite protocol, pushing WLFI token collateral utilization close to the 510 million token cap. The activity primarily involves two multisig wallets (0x5be9 and 0x44a6). Wallet 0x44a6 pledged 300 million WLFI tokens (approximately $242 million) and borrowed roughly $40.7 million in stablecoins—primarily USD1. Wallet 0x5be9 employed a circular borrowing structure: it borrowed $111 million in USD1 and $89 million in USDC, then reused the borrowed USD1 as collateral to borrow additional USDC. Under the current setup, WLFI would need to decline by approximately 75% before liquidation is triggered. The team has already repaid about $10 million in USD1 and stated it will add further collateral if needed. As of now, World Liberty Finance accounts for 82.7% of Dolomite’s total supply and 85.3% of its total borrows. This situation remains ongoing and evolving.