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Writer's pictureJean D

Phylax Systems, a Hack Prevention Protocol Aimed at Solving Crypto’s Security Challenges, Raises $4.5m Pre-Seed Funding Led by Figment Capital and Nascent

Phylax Systems

November 1, 2024


Phylax Systems has announced the completion of a $4.5 million pre-seed funding round, led by Figment Capital and Nascent. This funding will support the development of the Credible Layer, a hack prevention protocol aimed at addressing the security challenges faced by the blockchain sector. Additional backing comes from Robot Ventures, Hash3, Bankless Ventures, Breed VC, Public Works, and several angel investors.


The emergence of Phylax Systems follows a significant hack experienced by the founding team at Nomad, where a loss of $190 million highlighted the vulnerabilities within the crypto landscape. The experience prompted discussions among users, founders, and engineers, revealing widespread concerns about security in the industry. Many stakeholders reported heightened anxiety over potential hacks, leading to attrition of talent within the space. Phylax Systems aims to counteract this trend by developing solutions that focus on preventive measures rather than reactive fixes.


The Credible Layer will allow decentralized applications (dApps) to define specific security parameters and communicate these to block builders, with an assertion enforcer validating transactions against these rules. This system is designed to intercept potentially harmful transactions before they occur. Transparency is a core component to review a dApp’s security rules and their enforcement status. By charging fees for this validation, dApps can ensure the safeguarding of their assets.


About Phylax Systems


Phylax Systems is a security-focused technology firm dedicated to enhancing the safety of decentralized applications within the blockchain ecosystem. The company is developing the Credible Layer, which aims to establish proactive security measures that can be verified by users. Founded by a team with firsthand experience in blockchain vulnerabilities, Phylax Systems is positioned to influence security standards in the industry.


X: @phylaxsystems


About Investors


Figment Capital

Figment Capital is a venture capital firm that invests in blockchain technology and decentralized finance (DeFi) projects, supporting early-stage companies with capital and strategic guidance. The firm leverages its extensive network to help portfolio companies navigate the complexities of the crypto market.


Location: New York, NY 


Nascent Venture

Nascent is a venture capital firm focused on funding early-stage blockchain startups that aim to reshape industries with transformative technology and sustainable business models. Known for its collaborative approach, Nascent works closely with founders to build strong and scalable businesses in the evolving blockchain landscape.


Location: San Francisco, California 


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