Crypto custody firm Trustology has rolled out a solution to combat the risk of smart contract security breaches in DeFi protocols. In the fast-paced and rapidly growing DeFi sector, unaudited protocols written by anonymous project owners and developers are aplenty and yield farmers often jump into new projects without fully understanding the risks they present. A survey done by crypto analytics and data platform CoinGecko recently showed that 40% of farmers who responded to the survey do not know how to read smart contracts and are unaware of the risks any given protocol might present.
Multiple DeFi platforms and protocols have already fallen victim to hacking attacks, leading to the loss of funds and user data. However, due to the nature of decentralization, it is often difficult for project owners to intervene, which puts many users at risk.
According to a press release, Trustology is giving institutional DeFi investors the assurance they need in the form of its TrustVault solution, which helps to verify a checklist of safety markers, such as ensuring that protocol smart contract address, contract method, and method parameters, including token smart contract and external addresses have been cleared in “allowlists”.
Using TrustVault private keys, institutional fund managers or asset brokers will be able to move their assets between multiple DeFi protocols without worrying about a breach in security, and this will in turn allow them to guarantee the safety of their clients’ funds.
“DeFi is at an all-time high in terms of locked value, trading volumes, innovation, growth and risks. Institutions want to be able to know they can either borrow, then CDP their ETH with MakerDAO to mint DAI stable coin or lend money, using Compound Finance for instance. And they want to do so in the safest, fastest and easiest way. We just want to ensure we are the crypto spacesuit that institutional DeFi pioneers have been waiting for,” said Alex Batlin, CEO of Trustology.
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