Fireblocks, a crypto custodian, now provides DeFi protection tools for institutions.
Fireblocks, a cryptocurrency custodian, has unveiled two new products aimed at enhancing security for institutional participants in the decentralized finance (DeFi) market. The dApp Protection and Transaction Simulation tools are designed to protect institutions from scammers, phishing sites, and compromised decentralized applications (dApps).
These products conduct thorough examinations of dApps across more than 40 blockchains, utilizing WalletConnect, Fireblocks’ browser extension, and MetaMask Institutional. The goal is to mitigate the risks associated with suspicious smart contracts and improve the overall safety of DeFi transactions for institutional users.
Fireblocks emphasized the critical need for proactive security measures in the rapidly growing DeFi sector. The expansion of the DeFi sector has led to an increase in funds lost to hacks and scams. While the amount stolen from DeFi hacks decreased in 2023, there has been a resurgence in thefts in 2024, driven by phishing websites, dApp takeovers, and supply chain attacks.
To address these challenges, Fireblocks has introduced a dApp and DeFi protection tool that provides real-time threat detection alerts. This tool warns users before they interact with phishing websites or potentially compromised decentralized applications. Additionally, Fireblocks offers a transaction simulation feature that previews the estimated change to a user’s token balance resulting from a smart contract interaction before the transaction is executed.
Andrew Taubman, Deputy Chief Operations Officer at Fireblocks, highlighted the importance of these tools, stating that they are essential for staying ahead of evolving on-chain threats and providing transparency in the transaction approval process.
The DeFi sector is experiencing significant growth, with the total value locked in DeFi protocols increasing from $54 billion to $94 billion. However, experts have raised concerns about potential security threats, including the use of artificial intelligence and large language models to identify vulnerabilities in smart contracts.
In light of these concerns, experts recommend that new crypto users should not rush into DeFi. They advise newcomers to initially rely on centralized exchanges and wallets, which are viewed as safer due to their established trust and reliability. They also recommend using hardware wallets for enhanced security and educating themselves about key aspects of crypto security.
Overall, Fireblocks’ new products aim to enhance security in the DeFi market and protect institutional users from scams and compromised dApps. As the DeFi sector continues to grow, it is important for users to prioritize security and take necessary precautions to protect their investments.
