1inch partners with Blockaid to combat DeFi fraud and cyber threats

This collaboration aims to protect digital assets across major blockchain networks by enabling real-time security alerts.
This collaboration aims to protect digital assets across major blockchain networks by enabling real-time security alerts.

Decentralized finance (DeFi) platform 1inch announced a collaboration with Web3 security provider Blockaid to upgrade security measures within its ecosystem. 

On June 20, 1inch Network revealed its aim of identifying and preventing fraudulent activities like phishing scams and hacks. In an announcement, the DeFi platform highlighted that Blockaid’s security features, which simulate transactions before execution, will play an integral role in enhancing DeFi security.

The announcement highlighted the urgent need for security enhancements in the DeFi space. Citing the millions in crypto assets lost from malicious attacks in April 2024, the two companies argued that Blockaid’s security measures could help combat the rising tide of fraud and cyber threats.

Integrating real-time security alerts

1inch has introduced the 1inch Shield, a security solution developed in collaboration with Blockaid. This system detects and marks scam tokens, helping users avoid fraudulent transactions.

Integrating these features into the 1inch and broader DeFi ecosystem would provide real-time warnings about potential security risks. It supports major blockchain networks, including Ethereum, Base, BNB Chain, Polygon, Arbitrum, Optimism and Avalanche.

Blockaid co-founder Ido Ben-Natan emphasized the significance of this collaboration and argued that the partnership with 1inch is a pivotal step in securing the Web3 ecosystem. He said:

“By integrating our robust security solutions with the 1inch platform, we enhance the safety of digital assets, fostering trust and confidence among users in the DeFi space. Our joint efforts will pave the way for a more secure and accessible DeFi environment for everyone.”

The Shield application programming interface (API), which will be gradually integrated into 1inch products, is designed to be adaptable for any Web3 application, including decentralized applications (DApps), wallets and exchanges.

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Securing the DeFi ecosystem

Sergej Kunz, co-founder of 1inch, told Cointelegraph that the partnership also aims to help the broader DeFi ecosystem. Kunz clarified that it had launched its own product and provided access to it through an API. He said:

“If someone is building a Web3 project, they can integrate our solution into their project without having to go through the long integration path with all the security vendors or even creating their own security measures from scratch.”

The executive believes that merging the strengths of leading providers will set a new standard for Web3 security.

“This collaboration sets a new standard for Web3 security by taking advantage of Blockaid’s strengths and combining it with additional AML compliance screening and labeling functionalities from other top vendors,” Ben-Natan added.

The Blockaid CEO said this approach ensures that Web3 users are protected from various threats, from scams and malicious attacks to compliance risks.

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