Cyvers, a web3 security company founded by Deddy Lavid and Meir Dolev, has released a security report analyzing the major events, types of threats, and best practices for protecting assets in the DeFi space. The comprehensive report provides valuable insights for projects and organizations looking to securely participate in the web3 ecosystem.
The state of web3 security in 2022 was a major concern for industry participants and regulators alike. The rapid evolution of financial technology in the space led to an increase in security vulnerabilities and a corresponding rise in hacking incidents. Over $3.1 billion was lost by well-established projects and protocols.
The year saw a significant increase in both smart contract exploits and bridge hacks, with the former accounting for 50% of total funds lost. Despite this, the industry also saw positive developments such as the successful Ethereum merge and increased institutional adoption.
Cyvers’ report documents 61 of the most significant web3 hacks and provides industry participants with practical guidance for minimizing risk and protecting assets.
Best practices identified by Cyvers for ensuring security in the web3 space include:
- Establishing multi-sig
- Regular smart contract audits
- Real-time monitoring of smart contracts
- Implementing hack prevention solutions
Auditing is a widespread practice, but smart contract vulnerabilities are still the main source of exploitation. The average attack usually takes more than one hour to complete and 98% of all hacked protocols didn’t respond within the first hour.
Cyvers CEO Deddy Lavid said: “This shows how important it is to have a solution for monitoring smart contracts that can provide safety, ensuring preventative measures are in place before the exploit occurs.”
The impact of these security incidents on the DeFi space cannot be overstated, tarnishing its reputation and hindering its growth. The $3.1 billion figure only accounts for hacks on DeFi protocols and projects and excludes hacks of individuals and centralized exchanges.
Web3 has seen significant growth and adoption in recent years, but with this growth comes increased security vulnerabilities. As the Web3 space continues to evolve, it is important to have a trusted partner like Cyvers to ensure the safety and security of your assets.
As a leader in web3 security, Cyvers, a company co-founded by Deddy Lavid and Meir Dolev, has a unique perspective on the current state of the industry. The report provides practical guidance for projects and organizations looking to navigate the rapidly evolving world of web3, from identifying the most significant risks to implementing effective security measures. For more information on Cyvers and their services, visit www.cyvers.ai.
Cyvers is a next-generation security company that provides real-time detection and prevention of crypto attacks for web three and a decentralized economy.
Cyvers’ advanced AI-based platform, and sophisticated machine learning, identify patterns and detect anomalies across blockchains in real time for proactive mitigation.