How to Improve DEFI Security

🚨 DeFi can be a goldmine - or a minefield 💣 Scammers prey on unsuspecting users in the web3 space ☹️ To support Kraken Digital Asset Exchange in #scamawarenessweek here's your DeFi Safety Checklist to stay ahead of common ❗️web3 scams👇 1/ DYOR (Do Your Own Research) Verify a project's legitimacy. 👀Check audits, social proof, and team. Review whitepapers — are the goals realistic or is it just hype? 2/ Watch Out for Too-Good-to-Be-True Yields 🙏 A protocol promising sky-high 👩⚕️ returns is often unsustainable, or a true Ponzi #scheme. Stick to platforms with realistic APYs and proven history. 3/ Guard Your Private Keys and Maintain Custody Your private keys 🔐 are the keys to your crypto kingdom. Never share your keys. Scammers impersonate trusted platforms and lure you 😈 into entering your keys into fake websites. Use cold wallets (hardware wallets) to keep your keys out of reach. Interact with DEXes instead of CEXes to keep custody of your own assets 🤝 4/ Double-Check Smart Contracts and Dapps Before Using Before interacting with smart contract or dapps, verify audit status and legitimacy ✔️ Many scam projects deploy malicious contracts that siphon your funds upon approval. 💡Tools like Etherscan or Token Sniffer can analyze contract legitimacy. Always check grated permissions, and avoid “infinite approvals” unless absolutely necessary. 5/ Phishing Awareness Beware of fake websites and apps mimicking DeFi platforms 😨 Bookmark official sites 🔖 and double-check URLs before connecting your wallet. 6/ Monitor Your Activity Enable tools like Etherscan’s wallet tracker to get notifications for all transactions. This allows you to detect unauthorized activity 🙏 If suspicious behavior occurs, act fast ⚡️ revoke permissions and move your funds to a secure wallet 👍 🌟 Security isn’t an option in #DeFi, it’s a necessity. 💾 Save this checklist and share it with your friends. Together, we can make web3 safer for everyone. 🚀 #2024ScamAwarenessWeek #CryptoSafety

How have some of the largest crypto hacks involved tricking sophisticated teams into signing malicious transactions? For example, the $1.5 billion operational loss at Bybit was due to this. When transferring funds, or interacting with a DeFi product, a transaction must be signed. The largest operational attack in crypto (the Bybit hack) involved tricking the Bybit team into signing a transaction that they thought was legitimate, but actually sent funds to a malicious party (the North Koreans). This attack has also hit many many more - including DeFi protocols, individuals, funds. It is important to have multiple methods of verifying transactions when managing crypto custody. What does this mean to have multiple methods of verifying a transaction? When you go to sign a transaction, there is a batch of data that is produced that we can just call the "unsigned transaction". That unsigned transaction looks like a seemingly random collection of numbers and letters - you need some method to verify that the information you are about to sign is, in fact, what you want to sign. What is the problem? Sometimes your method of verifying the transaction becomes compromised. How can you mitigate this? Here are a few practical examples of solutions: - Have dedicated machines for signing transactions (including automated cloud based signers). - Use a pre transaction tool/service that acts as a separate pair of eyes to look at your transaction. This tool/service should be independent of your operation. - If you are using a crypto custody solution that allows setting signing policies (i.e., setting frequent allowable transactions), take advantage of that and actually set the policies. If the solution's policy engine does what it is supposed to, then this should mitigate risks to an operation's frequently used transactions. - Some custody technology providers implement their own transaction flows. This can include proprietary wallet browser plugins and hardware (usually pushing transaction information to phones), this is one more surface an attacker would have to compromise. Of course, the efficacy of those plugins and flows would need to be secure.

10 security insights every web3 team must know in 2025 (vital to protect your project from billion-dollar hack) H1 2025 alone saw $2.2B in onchain losses. Most were preventable! 𝟭/ 𝗛𝗮𝗰𝗸𝘀 𝘀𝘁𝗿𝗶𝗸𝗲 𝗵𝗮𝗿𝗱𝗲𝗿 Losses in H1 2025 already surpassed all of 2024. Centralized exchanges were hit hardest. 👉 Don’t rely on single points of failure. Segment infrastructure, audit dependencies and use multi-chain redundancy. 𝟮/ 𝗦𝗼𝗰𝗶𝗮𝗹 𝗲𝗻𝗴𝗶𝗻𝗲𝗲𝗿𝗶𝗻𝗴 𝘀𝘁𝗶𝗹𝗹 𝗳𝗼𝗼𝗹𝘀 𝘁𝗲𝗮𝗺𝘀 Bybit’s $1.45B breach started with fake UIs and blind approvals. No stack is immune from phishing. 👉 Protect your users at the interface level. Integrate scam detectors and signing risk alerts in-wallet or in-dapp. 𝟯/ 𝗛𝘂𝗺𝗮𝗻𝘀 𝗺𝗮𝗸𝗲 𝗰𝗼𝘀𝘁𝗹𝘆 𝗺𝗶𝘀𝘁𝗮𝗸𝗲𝘀 ~65% of major breaches in 2025 were human-caused. Clicking a bad link. Misconfiguring access. Missing an exploit. 👉 Automate risk detection and response. Set rules that trigger alerts or block flows in real time. 𝟰/ 𝗘𝘁𝗵𝗲𝗿𝗲𝘂𝗺 𝗱𝗿𝗮𝘄𝘀 𝗵𝗮𝗰𝗸𝗲𝗿𝘀 68% of value lost this year was on Ethereum. Attackers follow the money. 👉 Monitor TVL and contract health across chains. Don’t let asset concentration blindside you. 𝟱/ 𝗥𝗲𝗴𝘂𝗹𝗮𝘁𝗶𝗼𝗻 𝗴𝗲𝘁𝘀 𝗿𝗲𝗮𝗹 MiCA, DORA, and new US stablecoin laws are live. GDPR/CCPA-style fines are coming for non-compliant dApps. 👉 Make compliance part of your infra. Run KYT, OFAC and risk screening - ideally in real-time. 𝟲/ 𝗣𝗿𝗶𝘃𝗮𝘁𝗲 𝗸𝗲𝘆 𝗹𝗲𝗮𝗸𝘀 = 𝗶𝗻𝘀𝘁𝗮𝗻𝘁 𝗱𝗲𝗮𝘁𝗵 Over $90M lost from exposed signing keys this year. 👉 Use HSMs or MPC for sensitive keys. No admin key should live in someone’s Notion. 𝟳/ 𝗔𝗜 𝗶𝘀 𝗻𝗼𝘄 𝗽𝗮𝗿𝘁 𝗼𝗳 𝗱𝗲𝗳𝗲𝗻𝘀𝗲 Auditors are using AI to find flaws in seconds. It’s shifting how we think about security. 👉 Adopt AI-driven runtime monitoring. Don’t wait for the next audit window to find critical bugs. 𝟴/ 𝗗𝗲𝗙𝗶 𝗰𝗼𝗺𝗽𝗹𝗲𝘅𝗶𝘁𝘆 = 𝗲𝘅𝗽𝗹𝗼𝗶𝘁 𝘀𝘂𝗿𝗳𝗮𝗰𝗲 Lending, staking, bridging - all multiply risk. One faulty assumption → $800M drained. 👉 Stress-test protocols under real conditions. Simulate abnormal activity, not just happy paths. 𝟵/ 𝗟𝗼𝗼𝘀𝗲 𝗽𝗲𝗿𝗺𝗶𝘀𝘀𝗶𝗼𝗻𝘀 𝗸𝗶𝗹𝗹 𝗽𝗿𝗼𝘁𝗼𝗰𝗼𝗹𝘀 $1.5B+ lost due to admin keys and overly permissive contracts. 👉 Enforce multi-sigs, roles and time-locks. Monitor permission changes in real-time. 𝟭𝟬/ 𝗦𝗺𝗮𝗿𝘁 𝗰𝗼𝗻𝘁𝗿𝗮𝗰𝘁𝘀 𝗮𝗿𝗲 𝘀𝗶𝗹𝗲𝗻𝘁 𝗹𝗶𝗮𝗯𝗶𝗹𝗶𝘁𝗶𝗲𝘀 80%+ of onchain losses stem from code flaws. Most of them are still undetected until too late. 👉 Deploy proactive threat detection. Use tools like W3A to catch anomalies the second they go live. 🌐 Protect your dapps, users & assets → https://Web3Antivirus.io/ Proactively defend every Web3 interaction, meet compliance standards with ease and protect digital assets across your entire stack in real time. — ♻️ Find it useful? Leave a reaction and share with your network