How Dedalus Labs is Making AI Agents Safe with DAuth
In this article, you’ll discover:
- How Dedalus Labs raised 11 million dollars to make AI safe.
- Why the current MCP system leaves your passwords at risk.
- How the new DAuth tool hides your data in an offline space.
- Why you can build safe agents in just a few lines of code.
As someone who loves exploring new tech, I have noticed AI agents popping up everywhere. They are like smart helpers that can do boring tasks for us. But there is a hidden problem we need to talk about. How do we keep our private data safe when these agents connect to our apps? It is a big question for smart investors and builders right now.

A startup called Dedalus Labs is fixing this. They just raised a huge seed round of 11 million dollars. Their goal is to make building agents safe and easy. Cathy Di is the CEO of Dedalus Labs. She explains their mission perfectly:
“We built DAuth because we think agent authentication should be a solved problem, not something every developer reinvents badly. We built Dedalus to allow everyone to create ai agents in five lines of code. This launch means that now you don’t have to be a security expert to build safe agents, and that’s key to making agents something that people trust.”
The Problem with Passwords
Agents use a system called MCP to talk to other apps. It is a great system. But it has a flaw. It does not clearly say how to hide secret keys or passwords. Right now, many servers just hold these raw secrets. If a bad actor gets in, they can steal everything. We saw this happen recently with the OpenClaw issues. It makes people scared to trust these new agents.
A Digital Fortress
This is where DAuth comes in. DAuth stands for Dedalus Auth. It acts like a strong shield for your data. When an agent needs to use a tool, DAuth encrypts your API keys right on your device. It sends the request to a completely offline space called The Enclave. This space checks your keys for just a few milliseconds. Then, it wipes them from memory. No one ever sees your raw secrets, not even the team at Dedalus Labs.
Quick and Easy

The best part? Builders do not need to spend weeks learning about complex security. DAuth is built right into their software kit. You can set it up in just few lines of code. This means anyone can build an agent that is as safe as one made by a major company like Google.
If we want AI agents to really help us work, complete trust is a must. Security cannot be just an extra feature. By making safety the default, Dedalus Labs is helping build an agent economy we can all rely on.

