Fireblocks Introduces Tools to Safeguard DeFi for Institutions

Cryptocurrency custody expert Fireblocks is assisting organizations investigating decentralized finance (DeFi) in avoiding dealing with dishonest parties and becoming targets of harmful attacks with the use of new threat detection and smart contract evaluation tools.

Fireblocks’ Transaction Simulation and dApp Protection products, undergoing beta testing with Galaxy and Flowdesk since December last year, are now compatible with WalletConnect, Fireblocks’ browser extension, and MetaMask Institutional. Users can explore decentralized applications across over 40 blockchains.

DeFi, has seen a recent spike in interest due to the constant rise in the price of cryptocurrency assets. Institutions more and more investigating lending, swapping, staking, and bridging using popular platforms such as Uniswap, Aave, Curve, 1inch, and Jupiter are being used by

According to Shahar Madar, Fireblocks’ VP of security products, while some customers have dedicated Web3 research teams, many lack the resources to hire cybersecurity experts with DeFi and Web3 expertise. As a result, they need to scale their operations effectively.

Using patterns like malicious URLs, malicious javascript components, and suspect registrars, the solution searches for phishing websites, hacked dApps, and questionable smart contracts.

In an interview, Madar stated, “We’ve mapped out the user journey of a DeFi and Web3 trader. Usually, it starts when you scan with your phone and connect to a dApp and are asked to start signing transactions.”

Madar added, “We put mitigations and detection mechanisms throughout this journey. For instance, we scan the transaction, we scan the counterparty, we try to make sense of the contract, and also offer transaction simulation, essentially giving you the bottom line of what you should be expecting.”

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