On Sep. 23, crypto custody provider Trustology released a new set of security controls aimed at making the DeFi space safer for institutional investors. The new service now makes it easier and safer for users to move assets across DeFi protocols using smart contracts.
As per Trustology’s official announcement, the “DeFi firewall” solution is the first of its kind in the world. It will provide wallet-level security and custodial services tailored for institutional investors without giving up convenience, security, or transacting in real-time.
The firewall empowers Trustology to confirm the authenticity of various DeFi protocols before permitting users to lock in funds into their liquidity pools. The verification is done without affecting the speed and scalability of the transaction.
If the smart contract detects any unsatisfactory controls, e.g., wrong protocol smart contract address, it automatically stops the user from interacting with the unauthorized protocol or address.
Trustology’s new smart contract controls further protect users by offering insurance protection and account recovery capabilities.
Trustology’s Firewall Could Accelerate DeFi Adoption
As more institutions seek to dip their toe in the exploding DeFi sector, there is a growing urgency to provide regulatory compliance, scalability, and infallible security in the space.
Lucrative ventures such as yield farming drive adoption and demand in DeFi for institutions looking to maximize returns.
The biggest obstacle to adoption has been the lack of asset protection against several external and internal threats. Indeed, the DeFi space has seen its fair share of hacks since 2018 when decentralized finance first came to the public purview.
Another nagging issue has been the failure for protocols to demonstrate compliance amid intense scrutiny from investors and regulators who want guarantees that invested assets are protected.
Trustology has now moved in to solve these issues. The crypto custodian’s DeFi Firewall controls allow institutional investors to securely and conveniently move digital assets between DeFi protocols using advanced security controls.
The firewall verifies various projects thus removing trust barriers for investors intending to lock in their funds in a specific DeFi protocol.
Furthermore, Trustology has innovated a frictionless and user-friendly way to store and safeguard the large number of assets involved in an institutional user’s multiple transactions. They also specialize in the management of private keys in highly secure hardware modules.
Enhancing DeFi Verification with TrustVault Solution
Trustology aims to draw more institutional investors and their holdings into DeFi by allowing them to interact with safe and verified smart contracts from their TrustVault custody system.
The TrustVault solution proxies every transaction through the system’s rules engine, checking if parameters such as protocol smart contract address and contract method are satisfactory. TrustVault signs the transactions with custody keys that are then sent to the network for verification.
Alex Batlin touched on the inner workings of the Defi security solution. He explained that Trustology’s DeFi Firewall is designed to scrutinize transactions sent from TrustVault accounts.
The firewall confirms that the smart contract address destination, the contents of the transaction, and other security checks are correct before transferring funds.
The verification is done via advanced hardware and cloud-based security infrastructure that ensures near-instantaneous processing.