Chaos Labs

Chaos Price Oracles went live this week across three ecosystems built around payment and USD-pegged assets: Tempo (incubated by Stripe & Paradigm), Stable (backed by Bitfinex & Tether.io), and HyENA (by Ethena Labs). Stablecoin payment and USD-pegged asset ecosystems rely on accurate, high-frequency pricing to support settlement, routing logic, and collateral valuation. Chaos Price Oracles provide the price and risk data that enable these networks to settle transactions reliably and operate consistently across all market conditions. Read more about the integrations: • Tempo - https://lnkd.in/ewch5ygs • Stable - https://lnkd.in/ea-4MNbt • HyENA - https://lnkd.in/dq-iFjNk

HyENA, an Ethena Labs USDe-margined perp DEX built on Hyperliquid’s HIP-3 standard, has integrated Chaos Price Oracles. HyENA supports USDe as trading collateral and requires precise, low-latency pricing for margining and liquidations. Chaos Price Oracles will provide sub-second updates, including: • HIP-3 native, cryptographically signed price updates • Built-In Risk Filtering to remove manipulated inputs • Ultra Low Latency with five-per-second updates • Granular Market Precision for execution and risk modeling Read more: https://lnkd.in/dq-iFjNk

DeFi Funding-Rate Swaps: An Overview of Pendle Boros In this video, our senior data scientist Andre M. Rodrigues breaks down the mechanics behind Pendle Boros, an onchain protocol for trading funding rates. The presentation covers interest-rate swap structure, funding-rate behavior and the risk framework we designed in collaboration with the Pendle team. https://lnkd.in/gV5s3eue

Frax frxUSD, a fully collateralized institutional-grade stablecoin with reserves held by regulated U.S. custodians including BlackRock, Superstate and WisdomTree, has integrated Chaos Proof of Reserves. Chaos PoR enables independent onchain monitoring and real-time reserve verification across all deployments, including: • Crosschain supply versus reserve validation • Independent collateralization attestations • Real-time dashboards with historical views Read more: https://lnkd.in/gbeqqwrv

Onchain vaults and structured products have exposure to a wide range of assets, venues, and liquidity; however most operate without a clear risk mandate. In this article, we outline how solvency, liquidity, and yield volatility shape vault design, and present a data-driven automation framework that enforces risk limits across market conditions. Read more: https://lnkd.in/gV4uakeH

USDT0 has integrated Chaos Proof of Reserves to provide independent onchain monitoring and real-time reserve verification across all deployments. Chaos Proof of Reserves offers a unified view of USDT0 supply, backing and collateralization conditions across chains. View the dashboard: https://lnkd.in/gehgtpaB

The YU Stablecoin Depeg and the Case for Verifiable Collateral The recent depeg of Yala’s $YU stablecoin is yet another reminder of a pattern we’re seeing across the market: structural opacity paired with collateral assumptions that users are asked to take on faith. YU’s renewed instability can be traced back to September’s exploit, where unauthorized minting expanded the supply and created long-tail risks. Recent on-chain activity, including aggressive USDC borrowing against Yala-related positions and rapidly drained liquidity across the EVM and Solana, has amplified concerns about the proper backing of the asset. Despite Yala’s “transparency” dashboard, there is no third-party attestation, no reserve breakdown, and no real-time verifiability. In moments of stress, headline ratios are insufficient for institutions, platforms, and users who rely on stability guarantees. At Chaos Labs, we see this same theme repeatedly: Stablecoins fail not only because of exploits or market shocks, but because the verification layer is missing. Proof of Reserves (PoR) does not prevent bad decisions — but it turns them into visible, measurable facts. And when backing, custody, and liquidity are observable in real time, pegs don’t rely on assurances; they rely on math. As stablecoins continue to scale into payments, fintech, and treasury products, this level of transparency is no longer optional. It’s the minimum standard institutions need to safely integrate the next generation of digital dollars. If your team is exploring stablecoin infrastructure, risk frameworks, or PoR integrations, Chaos Labs is happy to share what we’re building across the ecosystem.

Onchain lending now underpins everything from basis trades to retail Earn programs. Our latest piece outlines the four structural levers that determine how onchain lending markets perform under stress and what it takes to build products on top of them. Read more: https://lnkd.in/d7egkHjZ

The Stream, Elixir, and USDX synthetic dollar unwind highlights how quickly risk can spread when reserves and dependencies are opaque. Our latest analysis maps that contagion loop and outlines concrete steps for protocols and curators to make risk verifiable. Read the full piece here: https://lnkd.in/gzdS6wzV

Recent events highlight the need for verifiable risk frameworks in tokenized yield markets. Last week, we outlined how onchain capital allocators are re-engineering DeFi’s risk stack through opaque composability, recursive yield strategies, and correlated collateral exposures. We also shared several paths forward for improving transparency, standardization, and verification. Read the report: https://lnkd.in/gfC9EgdQ