Security is not just a checkbox, especially if you’re running a DeFi business with a DeFi solution. Founders need to recognize that attacks are real and costly. In 2024, approximately 2.2 billion dollars were stolen from crypto platforms, with DeFi-related losses accounting for several hundred million dollars. So, prevention must be built into the design, not added later.
(Source: Chainalysis).
Here are the ways you can handle security risks in your DeFi startup.
Use a clear threat model and minimal contracts. Pre-launch using formal reviews, layered audits, and third-party penetration tests. Hire a reputable partner in DeFi Development Services to assist with creating permission boundaries, multisig controls, and upgrade patterns that minimize the blast radius. Plan to combine both independent audits and bounty programs, which are effective in uncovering different classes of problems. (SSRN)
Implement real-time monitoring and on-chain alerting, and circuit breakers will interrupt the risky flows. Use hardware keys for protecting and multi-party computation (where practicable).
Ensure there is a readiness incident plan that includes legal, communications, and recovery processes so that decision-making in an emergency is quick and controlled.
Insure or set up a reserve to meet losses by users where possible. Integrate operational tooling and runbooks with your DeFi Development Services provider so that fixes are not detected and then do not get chaotically moved to mitigation.
Close with measurements. Track audit coverages, mean recovery time, and mean time to detect. Treat security as a quantifiable service. Once the process of reducing risks is conscious, repeatable, and measurable, you gain the confidence of the user and long-term resilience.
In order to add post to this forum, login to your account.
