Fireblocks Launches DeFi Threat Protection Tools For Institutions
Crypto custodian Fireblocks announced on Wednesday that it has launched its dApp Protection and Transaction Simulation products, which will help protect institutions from run-ins with scammers in decentralized finance (DeFi).
Both products have undergone beta testing with Galaxy and FlowDesk since December of last year. They are now available to safety check decentralized applications (dApps) across over 40 blockchains using Fireblocks’ APIs, including WalletConnect and MetaMask Institutional.
“As the DeFi sector experiences unprecedented growth, the need for proactive security measures has never been more critical,” wrote Fireblocks in a blog post on Wednesday.
DeFi’s growth over the past several years has coincided with more funds lost to hacks and scams, with clever criminals building more sophisticated smart contract tooling contracts to separate victims from their digital assets.
Volume stolen from DeFi hacks fell from $3.1 billion in 2022 to $1.1 billion in 2023, according to Chainlysis. However, data from CertiK suggests that theft volume has already bounced back to $500 million in Q1 2024 alone, using phishing websites, dApp takeovers, supply chain attacks, and the like.
The landscape necessitates that DeFi users have automated tools for detecting malicious or duplicitous smart contracts before interacting with them. Though some Fireblocks customers have internal Web3 security teams, most lack the resources to hire cybersecurity experts to navigate the inherently opaque and technical nature of contract calls.
As such, Fireblocks’ dApp protecting tool provides real-time threat detection alerts before users interact with phishing websites or potentially compromised dApps. Meanwhile, transaction simulation shows users a
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