Nefture Protects Against DeFi?Risks

Decentralized Finance (DeFi) has emerged as a disruptive force in the financial landscape, offering a borderless, permissionless, and often lucrative alternative to traditional banking and investment systems.

However, with the promise of high returns comes its share of inherent risks.

?For crypto companies and crypto asset managers, the risks are endless, from counterparty risks to security and financial risks.?

Thankfully, all of these risks can be mitigated by using Nefture!

Nefture has developed a unique multi-layered approach that effectively addresses the risks associated with crypto investment, from crypto wallet threats to governance risks and fraud.

Security Risk??

Nefture Security protects DeFi Asset Managers from crypto threats by detecting on-chain vulnerabilities in real-time. We block suspicious transactions by displaying security information on every transaction leaving the client’s wallet.

Additionally, we monitor users’ assets in real-time, tracking events on smart contracts and wallet activity to send alerts in case of suspicious activity, such as private key theft, phishing attacks, or other vulnerabilities.

Nefture ensures that only safe transactions are processed, and dangerous transactions are blocked.

Third-Party Suspicious Activity??

Nefture monitors unusual or potentially illicit activities that might signal attempts to manipulate markets, commit fraud, or exploit vulnerabilities. Suspicious activities could include unexpected spikes in transaction volumes with obfuscated code designed to perform malicious actions. Monitoring for such activities is critical to avoid investment in compromised assets or platforms.

Governance Risk?

Nefture also protects hedge funds against governance risk in DeFi. We monitor the vulnerabilities associated with the decision-making processes embedded within smart contracts, the frequency, and patterns of proposals and voting activities within a smart contract’s governance system to detect anomalies or potential manipulations.

Liquidity Risk?

Liquidity risk in DeFi arises when there is not enough market depth to execute trades without significantly impacting the asset’s price. This can be due to the sudden withdrawal of funds from liquidity pools, market manipulation, or extreme market volatility.

High liquidity risk can lead to slippage, making it difficult to enter or exit positions without incurring substantial costs. Nefture protects asset managers against this threat.

Counterparty Risk

Counterparty due diligence is an intrinsic part of risk management for all involved in the crypto industry.

A crucial step to mitigate risks associated with transactions and business relationships in the crypto ecosystem, including risks related to fraud, money laundering, regulatory non-compliance, and financial instability.

Counterparty due diligence involves assessing all entities involved in a financial transaction to ensure their trustworthiness, evaluated through three lenses: true financial health, regulatory compliance, and foolproof security processes.

This also includes assessing the project’s whitepaper, team expertise, code audits, and track record.

Our Know-Your-Protocol implementation helps you mitigate counterparty risks with our due diligence investigation aid, accelerating the validation process for new protocols that align with your investment strategy.

Secondly, our live monitoring system continuously tracks a wide range of malicious activity indicators.

Whether a counterparty is waiting to execute a rug pull, a protocol faces a takeover that turns it into a threat, or a malicious smart contract upgrade occurs due to an exploit, our system is on alert.

Our detection system ensures that all upgrades are meticulously tracked, verified, and screened, alerting clients to potential malicious endeavour that could compromise their financial security.

With Nefture’s dual-layered defense, your investments is safeguarded from both pre-engagement risks and ongoing malicious counterparty risks.

By proactively mitigating potential risks, Nefture ensures that asset managers can securely leverage the full potential of Decentralized Finance.

Because each client’s needs are different, we choose not to adopt a one-size-fits-all security approach.

Instead, we co-build tailored security solutions that address the specific threat challenges they face.

Don’t wait?—?Begin your secure crypto journey today with Nefture!

Book a demo??