At Fireblocks, our Decentralized Finance mission is to reduce the complexity to access DeFi protocols and protect users when interacting onchain.
Interest in Decentralized Finance, or DeFi, is growing rapidly. In fact, the Fireblocks DeFi suite has supported over $22B in DeFi volume in the past 90 days alone and witnessed a 110% surge in DeFi volume between the second and third quarter of this year. As DeFi transaction volume surges, new entrants and industry veterans alike encounter challenges as they grow their transaction volume onchain.
Foremost among these challenges are complexity (balancing sophisticated capabilities and ease of use) and security (mitigating risk).
The processes to connect and transact onchain can be difficult, including connecting to a dApp, which can be cumbersome and error prone. Additionally, there are specific security risks to consider when interacting with DeFi platforms, including the risk of interacting with malicious or hijacked dApps, the risk of signing malicious transactions, and the requirement to manage open token approvals.
Two New Fireblocks DeFi Capabilities
The latest evolution of the Fireblocks DeFi suite introduces two new features – Fireblocks Swaps and the Fireblocks Token Allowance Manager – to reduce the complexity and risk for all users and lower the barrier to entry for new entrants.
The new Fireblocks Swaps capability reduces the complexity and time to swap tokens. Fireblocks Swaps enables users to quickly swap thousands of tokens directly from the Fireblocks console. Fireblocks Swaps integrates with the Uniswap API to source liquidity from offchain and onchain sources, and enables operations teams to swap tokens in a single click, abstracting the complexity of connecting with dApps and switching between systems while mitigating security risk.
The new Fireblocks Token Allowance Manager feature protects user operations against the risk of hacked contracts. Fireblocks Token Allowance Manager provides DeFi teams with comprehensive visibility into their on- and off-chain token allowances across wallets, while an improved dashboard lets teams manage their open approvals and protect funds by revoking approvals with one click.
Fireblocks Swaps
Connecting to dApps and switching between screens to complete a simple swap is time-consuming, introduces security risk in the form of the potential to connect to a phishing dApp, and can be particularly challenging for users that are not familiar with DeFi operations.
Popular swap dApps are typically built with a crypto-native consumer in mind, and, as a result, are less tailored for the needs of institutions, such as longer transaction signing and approval flows and custom governance requirements. Assessing and vetting swap platforms is time-intensive and dApps are often built differently and require different types of proprietary transactions, such as contract calls, or typed messages that need to be evaluated by businesses to streamline operations.
Meanwhile, using external dApps increases attack vectors, such as using potentially malicious or fake phishing dApps. Most dApps support the ability to set different recipients (e.g., A user might set a recipient wallet that does not belong to the organization and potentially reroute funds externally), which might introduce additional challenges due to human error or insider threat.
Through an integrated interface to swap tokens, Fireblocks Swap empowers users to securely swap tokens natively within the Fireblocks Console with liquidity sourced from offchain and onchain liquidity through the Uniswap API.
With Fireblocks Swaps, operations teams are able to quickly swap tokens without leaving Fireblocks. By not requiring users to transfer funds to an exchange account and log in, operations teams save time while improving security by reducing the number of team members who have access to an exchange account login. Additionally, Fireblocks Swaps mitigates the security risk of connecting to a fraudulent dApp, providing an additional layer of security.
Fireblocks Token Allowance Manager
When an individual gives a smart contract permission to spend their tokens, the smart contract can spend the tokens at any time. If the smart contract is hacked or malicious, the individual’s wallet is at risk of being depleted.
Managing and revoking access to allowances regularly is time consuming, and many individuals and organizations lack comprehensive and accessible visibility into token allowances across all different wallets and connected dApps.
With the Fireblocks Token Allowance Manager, users gain visibility into all of their active allowances across Fireblocks wallets and can allow anyone in the organization to revoke approvals, while gaining the ability to revoke and edit allowance permissions easily to reduce the risk of smart contract hacks.
This offers Fireblocks clients a one-stop-shop for viewing and managing their token allowances, delivering operational efficiency optimization while improving their overall security level.
The Fireblocks Token Allowance Manager interface integrates into the Fireblock Console to enable users to efficiently manage and revoke their onchain and offchain token allowances. Alternately, clients have the option to manage their active onchain and offchain token allowances via an API. At launch, Fireblocks offers support for Ethereum.
See Fireblocks Swaps and Fireblocks Token Allowance Manager in action
Curious to see how Fireblocks helps businesses secure their digital asset operations? Want to see Fireblocks Swaps and Fireblocks Token Allowance Manager in action? Request a demo here.
