Israeli startup develops solution to secure booming DeFi market
“More than $41 billion worth of assets are locked in DeFi apps, yet their security solutions are still consumer-oriented,” said Hub Security CTO and co-founder, Andrey Iaremenko
Israeli startup Hub Security has developed a new secure custody solution geared towards the Decentralized Finance (DeFi) sector, aiming to enable teams to securely connect between leading cryptocurrency wallet MetaMask and the popular Ethereum blockchain, as well as most other prominent global DeFi platforms. The new service would provide organizations with end-to-end cyber protection for their MetaMask crypto wallets within a rugged hardware environment using Hub Security’s secure platform.
The solution’s technology is based on the company’s unique cybersecurity capabilities, which leverages Hub Security’s ultra-secure Vault HSM (Hardware Security Module) device and key management platform. Hub Security utilizes military-grade cybersecurity principles for its Vault HSM and handheld mini-HSM devices and provides security solutions for fintech, AI applications and cloud, as well as blockchain.
“The growing use of DeFi has led to a sleuth of new DeFi applications that enable the performance of complex financial transactions such as flash loans, decentralized exchanges, and complex financial hedging on the Ethereum blockchain. As of today, more than $41 billion worth of assets are already locked in various DeFi apps, and the number is only increasing,” said Hub Security CTO and co-founder, Andrey Iaremenko.
“At the same time, billion-dollar apps only allow complex transactions through consumer-oriented solutions like Ledger or Trezor wallets, which are unable to provide complete cyber protection. As a result, financial transactions often cannot be properly validated as secure, creating a gap where hacking activity can thrive.”
Hub Security says it's new solution will allow organizations to control and protect the activity of financial transactions, as well as smart contracts before they can be processed. “In order to comply with current regulation, a user must be able to see full details of a transaction — including the amount, receiver, and contract. But the market solutions available today are only able to provide users with a transaction’s hash, a string of letters and number on a 1 cm screen, to approve. Hub Security’s solution combines the cybersecurity of an HSM with a clear presentation of the transaction details, which allows bank-level security,” explained Iaremenko.
In addition, encrypted keys are stored and safeguarded on Hub Security’s secure remote servers where users can design unique and complex user-privilege architectures that would allow several signatories to approve high-level transactions at once. Hub Security’s platform leverages AI technology that can learn to predict the transaction patterns of users and prevent suspicious activity.