## About Us

Redefine offers advanced end-to-end security solutions for DeFi investors and traders. Our platform supports our customers throughout their DeFi investment journey. We provide customers with a dynamic risk score, real-time risk monitoring of their portfolio, and active features that save investors’ funds in case of an attack or indication of imminent financial loss.

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Explore the cutting edge of DeFi security with "Permit Messages and Permit 2: Enhancing DeFi Security Amidst Emerging Risks." This blog post delves into the innovative permit message technology and its evolution with Permit 2, highlighting their role in secure and efficient DeFi transactions. Despite their advancements, we uncover potential risks, including phishing attacks and smart contract vulnerabilities. Learn from past incidents and gain practical tips to protect your digital assets. This concise guide equips you with the knowledge to navigate the complex DeFi landscape safely. 

Permit Messages and Permit 2: Enhancing DeFi Security Amidst Emerging Risks

Decentralized finance (DeFi) introduces revolutionary mechanisms like 

, to facilitate secure and efficient transactions. Despite their benefits, these technologies also present unique risks. This article delves into these risks, offering insights into safeguarding your DeFi engagements.

Permit messages empower users with cryptographic signatures for blockchain transactions, enhancing secure interactions with smart contracts and dApps. However, their utility comes with vulnerabilities:

Phishing Attacks can deceive users into authorizing malicious transactions.

Smart Contract Vulnerabilities may allow exploitation, jeopardizing user assets.

User Errors in managing permit messages can lead to unintended approvals or rejections.

Centralization Risks contradict DeFi's decentralized ethos when too few control approvals.

 by Uniswap, represents a sophisticated advancement in the DeFi sector, refining the original permit mechanism to enhance token transaction permissions. This iteration brings forth heightened security measures, incorporating advanced cryptographic safeguards to mitigate vulnerabilities and ensure the authenticity of signed permissions. It also introduces an unprecedented level of user control, allowing for granular specification of allowances, including duration and quantity limits. 

The emphasis on user experience is evident, with streamlined processes and improved interfaces designed for broader and more intuitive applications across various DeFi platforms. Additionally, Permit 2 optimizes gas efficiency, further economizing the cost of transactions by adapting to the changing dynamics of the Ethereum gas market and leveraging layer-2 solutions for scalability.

However, the introduction of Permit 2 also surfaces new risks, particularly around its complexity and the potential for sophisticated phishing attacks. The advanced features and increased flexibility, while beneficial, can confuse users unfamiliar with the intricacies of DeFi transactions, making it crucial for users to educate themselves thoroughly about these mechanisms. Furthermore, the reliance on more complex cryptographic methods and smart contract interactions could inadvertently open avenues for exploiters if not implemented with utmost security standards.

The very sophistication that Permit 2 brings to the DeFi space, intended to bolster security and user autonomy, necessitates a higher degree of vigilance and understanding from its users to effectively navigate these potential vulnerabilities.

Distinguishing between "approve" transactions and "permit" messages is crucial. The former involves an on-chain operation allowing smart contracts to transfer tokens, necessitating gas fees. Conversely, "permit" represents an off-chain approval, merging authorization and action efficiently and cost-effectively. This distinction underscores the evolution towards more user-friendly DeFi transactions, exemplified by Permit 2.

Why Scammers Favor Permit Messages and Implications for Permit 2

Scammers often target permit messages in their strategies for several reasons:

 Permit messages are seen as a trusted mechanism for authorizing transactions. Scammers exploit this trust by crafting phishing attacks that mimic legitimate requests.

The technical complexity of permit messages can be daunting for average users, leading to oversights in security practices. Scammers exploit these gaps with sophisticated social engineering techniques.

 Since permit messages are signed off-chain and do not require immediate blockchain verification, scammers have a window to deceive users into authorizing malicious transactions without the immediate realization of the action’s consequences.

Illustrating the Risks: The Case of Bill Lou

 CEO, lost $125,000 to a phishing scam after clicking a link in a Medium article, which tricked him into signing a permit message in MetaMask, believing it to be a legitimate token airdrop. This scam, leading to a significant loss, highlights the acute risks of phishing attacks in the DeFi sector and the importance of vigilance even for industry experts, starkly illustrating the dangers present in the DeFi space. 

To protect against these risks, staying informed, verifying sources, utilizing security tools like DeFirewall, and practicing caution with permissions are indispensable strategies. These measures can significantly reduce the vulnerabilities associated with DeFi transactions.

Conclusion: Empowering Secure DeFi Engagement

With the advancements in DeFi, including permit messages and Permit 2, taking proactive steps toward security is crucial. Explore ReDefine’s risk management platform for tools and analytics designed to protect your digital assets. To get started, 

 to improve your DeFi security practices.

Comprehensive Analysis of the Ledger Connect Exploit: The Role of Redefine in User Protection

Ledger Connect Exploit

In the complex landscape of DeFi, the December 2023 Ledger Connect Kit exploit stands as a pivotal moment, showcasing not only the intricacies of blockchain vulnerabilities but internal controls, developer credential permissions, and also the critical role of advanced user-focused security systems and their roles in protecting users. This high-level analysis explores the multifaceted nature of the attack and demonstrates how Redefine’s technology could have been instrumental in mitigating user risk.

Ledger’s Connect Kit, essential in linking blockchain applications to crypto wallets, was compromised through the insertion of malicious code in versions 1.1.5 to 1.1.7, initiated through a phishing attack of a former Ledger employee who still had active credentials. This breach affected several dApps, leading to malicious transaction and signature requests being injected into users’ wallets that tried to interact with these dApps.

The application of the exploit employed various scam vectors through the injection of malicious payloads into user wallets, including, but not limited to, methods like Permit/Permit2 signature requests, transfers, approveForAll, and IncreaseAllowances. These vectors, aimed to mislead users into providing authorization to the attacker, enabling them to steal user funds.

A critical example of the exploit involved misleading users into signing an IncreaseAllowance transaction to a fraudulent spender contract. This permission enabled the attackers to drain assets from users' wallets using the 

 function. This instance highlights the cunning nature of the exploit and the potential for significant user losses.

In this scenario, Redefine’s advanced detection engine would have played a crucial role. The system was capable of identifying at least five risk flags, ranging in severity, that highlighted suspicious characteristics of the Spender addresses in question (i.e. the bad actor’s addresses). These flags were present even before any addresses were blocklisted. This proactive identification could alert users to the high risk of these transactions before signing them, thus preventing asset loss. With blocklisted addresses, the detection capabilities rose to around eight severe warning flags, further enhancing user protection.

The financial impact was profound, with losses exceeding half a million dollars. In response, Ledger promptly removed the malicious version of the infected package and issued a secure update. However, the reliance on dApps to integrate this update meant that user risk persisted until these updates were implemented fully on the dApps’ side.

Practical User Protection Strategies in the Context of the Ledger Connect Exploit

Recognizing and Avoiding Suspicious Transactions:

 One of the primary attack vectors in the Ledger Connect exploit was tricking users into approving malicious transactions, such as the IncreaseAllowance to a harmful spender contract. Users should always review transaction details carefully, especially when asked to approve permissions or allowances for contracts. Understanding the nature of what they are approving – whether it's a transfer of tokens, changes in allowances, or contract interactions – is crucial.

Use of Security Alerts and Monitoring Tools:

 Tools that can identify suspicious activities or raise flags about unusual transaction requests could have been significantly beneficial. Redefine’s engine, for example, was capable of detecting multiple high-severity flags related to such transactions. Users can leverage similar tools or services that provide real-time alerts on potentially malicious activities in their wallets or transactions they are about to approve.

Education on Smart Contract Interactions: 

The exploit highlighted the complexity of smart contract interactions and the importance of user education in this area. Users should be informed about the basics of smart contract functionalities, especially about how permissions and allowances work. Understanding these concepts could help users discern legitimate requests from malicious ones.

 Keeping wallet software and related applications up-to-date is crucial. In the Ledger Connect incident, a malicious update caused the problem, but generally, updates include patches for known vulnerabilities. Users should also be aware of the security status of the dApps they use, favoring those that undergo regular security audits.

 The initial breach in the Ledger Connect exploit was due to a phishing attack. Users need to be extremely cautious about phishing attempts, especially those that target their credentials or attempt to direct them to malicious sites. This includes being wary of emails, messages, or websites asking for private keys or wallet information.

Staying informed about the latest developments and threats in the blockchain space can be facilitated by engaging with the community. Users should follow reputable sources, participate in forums, and use collaborative platforms to stay updated on potential threats and best practices for security.

 Independent Verification of Transaction Details:

 Before confirming any transaction, especially those involving smart contracts or permission settings, users should independently verify the details. This can include cross-referencing contract addresses, checking the reputation of the contract creators, and understanding the contract's purpose. An effective aid in performing these verifications is by using third-party pre-transaction risk assessment security tools, such as the DeFirewall provided by Redefine.

By integrating these practices into their regular web3 interactions with dApps, users can significantly enhance their ability to detect and avoid threats like those presented in the Ledger Connect exploit. Education, vigilance, and the use of security tools form the cornerstone of effective self-protection in the evolving landscape of DeFi and blockchain.

The Ledger Connect Kit exploit serves as a critical reminder of the ever-present risks in the blockchain ecosystem. It highlights the importance of sophisticated security systems like Redefine’s, which can play a pivotal role in identifying and mitigating such threats. Through advanced detection capabilities, user education, and continual software vigilance, Redefine positions itself as a guardian in the DeFi space, proactively protecting users from complex and evolving security threats.

Dive into crypto world vulnerabilities with our latest post on reentrancy attacks, spotlighting its recent exploit in   Curve Finance. Uncover the intricacies of this attack and its potential dangers for your digital assets, and discover   how Redefine's DeFi Dome acts against such threatening threats.

Navigating the Reentrancy Attack With Redefine

In the dynamic realm of crypto, vulnerabilities can manifest as significant financial setbacks. The recent


 involving Vyper and Curve Finance exemplifies the technical intricacies
of this space. This blog post uncovers the reentrancy attack, delves into its occurrence within Curve Finance, and
introduces Redefine's DeFi Dome as a robust safeguard against such threats.

A reentrancy attack occurs between two smart contracts, where an attacking smart contract exploits a vulnerable contract
to drain funds. The exploit works by having the attacking smart contract repeatedly call the withdraw function before
the victim smart contract has had time to update the attacker's balance.

This is possible because of the order in which the smart contract is set up to handle transactions, with the vulnerable
smart contract first checking the balance, then sending the funds, and finally updating its balance. The time between
the funds being sent and updating the balance creates a window in which the attacking smart contract can make another
call to withdraw its funds, and so the cycle continues until all the funds are drained.

Exposing the Vyper Vulnerability in Curve Finance

Our spotlight focuses on a recent vulnerability in the


 that sent shockwaves through the DeFi sector.
Hackers exploited a flaw in Vyper's handling of reentrancy locks in versions 0.2.15, 0.2.16, and 0.3.0. Specifically, a
misalignment of storage slots between the add_liquidity and remove_liquidity functions compromised the nonreentrant
guard. This breach permitted attackers to manipulate LP token prices and drain the pool by re-entering the transaction
between these functions. As a result, they launched reentrancy attacks on various liquidity pools, continuously
withdrawing funds before the balances could adjust, culminating in a theft of over $69 million.

Defending Against Future Attacks: Lessons Learned

The Vyper incident underscores the importance of rigorous smart contract audits as well as post deployment security
solutions. Enter DeFi Dome from Redefine. A proactive tool that automatically shields funds in the event that an attack
is identified. By monitoring the



and using MEV techniques, DeFi Dome is able to identify attacks as they are being conducted and secure your funds. As
the DeFi landscape matures, innovative tools like DeFi Dome are pivotal for safeguarding digital assets.

 with Redefine and explore firsthand
how DeFi Dome can be your guardian against reentrancy attacks and other threats. Protect your assets; embark on a safer
DeFi voyage today.

Read how Redefine revolutionizes SwissBorg's DeFi trading operations with a comprehensive risk management solution, enabling them to focus on DeFi investments with a peace of mind.

SwissBorg Streamlines DeFi Trading with Redefine's Comprehensive Risk Management Solution

Founded in 2017, SwissBorg has rapidly established itself as a key player in crypto financing and investment, notably in Europe. After the successful launch of their crypto app in 2021, SwissBorg amassed a user base of over half a million, built an impressive team of more than 200 members, and amassed over $650 million in managed user crypto assets. With a mission to democratize wealth management and replace the traditional VC model, SwissBorg recently closed a Series A community funding round, raising an astounding $23 million from over 16 thousand investors.

Navigating the intricate landscape of DeFi trading, SwissBorg sought a solution to streamline transaction security, optimize approval processes, and provide swift detection of potential threats. Their objective was a user-friendly tool that offers real-time, actionable risk insights without compromising efficiency or operational security.

Redefine’s risk management suite proved to be SwissBorg's answer. "Redefine’s product has become integral to our operations, enhancing our trading activity's safety and streamlining our workflow," states SwissBorg. Redefine’s tool delivers real-time risk reports via a browser extension and a specific Slack channel, bolstering security in every transaction and providing wide internal visibility.

Moreover, Redefine's Approval Manager provides SwissBorg with an organized overview of active token approvals across all wallets. This enables swift detection of potential threats and facilitates revoking batches of cross-wallet and cross-chain approvals, effectively managing SwissBorg's DeFi security.

SwissBorg has experienced more than just efficient onboarding with Redefine; their ongoing relationship is characterized by the continued support and collaborative feature development. "Redefine’s team has been exceptional in guiding us through the process and addressing any concerns promptly," affirms SwissBorg.

Armed with Redefine's risk management solution, SwissBorg has significantly enhanced its DeFi trading operations. Through secure transactions, real-time risk alerts, and efficient approval management, SwissBorg can focus on its mission to democratize DeFi investments and redefine wealth.

 platform can elevate your DeFi trading operations' safety and efficiency. Contact us today to learn more.

Integrating Redefine’s DeFirewall into Safe{Wallet} Elevates Transaction Security.

Enhanced Blockchain Security: Redefine Partners with Safe for Unmatched Treasury Deployment Protection

Redefine, a leading innovator in blockchain security, together with Safe, the most trusted digital asset management
platform, are excited to announce their strategic partnership. By integrating Redefine’s groundbreaking DeFirewall, a
pre-transaction risk assessment tool, into Safe’s user interface, the collaboration aims to help users transact with
more confidence by diligently checking each transaction.

, the robust smart account wallet with enhanced security for on-chain treasury
management, has become the default wallet of choice for Web3 native projects and individual asset holders.

 worth of assets under self-custody, Safe’s mission is to bring
Web2-level user experiences to Web3, setting the standard for security and accessibility on the platform.
Safe{Wallet}users include Vitalik Buterin, AAVE, and other major protocols and DAOs. The integration of Redefine’s
DeFirewall into Safe{Wallet} elevates the level of protection over assets while guaranteeing greater transaction
security which will pave the way for greater adoption of digital assets.

, an established and proven product developed by Redefine, revolutionizes
risk assessment in blockchain transactions. By meticulously scrutinizing each transaction before execution, it generates
detailed risk reports and actionable insights. This innovative tool not only strengthens the security of institutions'
assets but also acts as a powerful deterrent against the unauthorized use of funds.

“Improving the user interfaces of Web3 platforms is one of the greatest tools we have in order to combat bad actors and
exploits in this industry,”

Richard Meissner, Co-Founder and Technical Lead at Safe

“The issue of blind
signing, where users may sign off on transactions they are not fully informed about, is an area of concern as we look to
make self-custody accessible to a wider range of users and organizations. By partnering with Redefine and integrating
DeFirewall, Safe is offering greater transparency and assurance in their everyday transactions, enabling sustainable
growth on the platform.”

“Safe is an unrivaled and trusted platform that financial institutions and other users depend on for managing their
digital assets securely,”

Shira Brezis, CEO and Co-Founder of Redefine

“This integration combines two
crucial elements for users—enhanced risk visibility and trusted security. We look forward to ushering in a new era of
security with this collaboration between Safe and Redefine.”

This partnership reaffirms Redefine's commitment to improving security standards for institutions deploying capital and
its dedication to enhancing security in every transaction. It aligns with the company's broader strategy of offering
resilient risk management solutions tailored to the specific needs of different financial entities across regions.

As the industry eagerly anticipates the impact of this collaboration, Redefine and Safe will continue to release more
details about how this partnership will shape the future of transaction security on-chain. Stay tuned for updates on
this exciting development.

We are thrilled to announce that Redefine Technologies has successfully completed the SOC2 Type 2 compliance audit,   validating our commitment to maintaining the highest standards of security, confidentiality, and privacy of your data.

Redefine Technologies Achieves SOC2 Type 2 Compliance

, a leading innovator in blockchain security, is proud to announce the
successful completion of the SOC2 Type 2 compliance audit, reinforcing its dedication to maintaining the highest
standards of data security and privacy.

As the digital landscape continues to evolve, organizations face increasing challenges in safeguarding sensitive data.
Achieving SOC2 Type 2 compliance signifies Redefine Technologies' unwavering commitment to protecting its customers'
information through stringent controls and robust security measures.

Conducted by an independent auditing firm renowned for its expertise in information security and compliance, the SOC2
Type 2 examination evaluated Redefine Technologies's systems, policies, and procedures over an extended period. The
audit focused on the effectiveness and suitability of controls in meeting the defined trust service criteria, including
security, availability, confidentiality, and privacy.

Key highlights of Redefine Technologies's SOC2 Type 2 compliance include:

By successfully achieving SOC2 Type 2 compliance, Redefine Technologies underscores its commitment to transparency,
accountability, and the ongoing protection of customer data. This achievement further solidifies its position as a
trusted partner in the blockchain security sector.

"We are thrilled to have achieved SOC2 Type 2 compliance, which validates our relentless efforts to prioritize the
security and privacy of our customers' data,"

"This milestone
reflects our dedication to maintaining the highest standards of data protection, and we will continue to enhance our
controls and practices to stay at the forefront of industry standards."

As Redefine Technologies continues to evolve and expand its services, SOC2 Type 2 compliance reinforces its commitment
to delivering exceptional value while ensuring the utmost security of customer information.

Amitai Ruskin

This blog post delves into the development of MEV and the Flashbots network

How MEV and Flashbots Shape the Dark Side of Private Transactions

Private transactions emerged from the worlds of 

 (Maximal Extractable
Value). While there are a few providers that allow transactions to be included in a block without going through the
mempool, Flashbots is the most widely used. Today, private transactions have become hackers' primary way of executing
attacks. In this blog post, we will look into how MEV and Flashbots evolved and how it is used in high-value and illicit
transactions today.

In blockchain’s early days, there was no MEV due to the limited functionality of Bitcoin and its various forks. However,
the creation of Ethereum, a 

 blockchain,
introduced a new paradigm where transaction placement became meaningful and potentially profitable.

While it isn’t clear when MEV started precisely, it became popular with the publishing of the


 paper, where the term MEV was coined. Another source that called out
the dangers of MEV was the 

 blog
post. In this post, Dan Robinson was among the first to point out the illicit activities happening in the mempool and
the centralizing forces beginning to form.

The surge in MEV activities led to network congestion and gas wars, creating a negative experience for the average user.
To counter this, Flashbots developed MEV-Geth, a patched Geth client. This allowed anyone to submit transaction bundles
to miners, boosting transparency and fairness. Despite initial criticism, it's now widely accepted that MEV can only be
minimized, not completely eradicated.

The importance of combatting MEV is front and center today and is even a core part of Vitalik’s Ethereum Roadmap - in
the section nicknamed the Scourge, which focused on ensuring reliable and fair credibly neutral transaction inclusion,
solving MEV issues:

The transition from proof of work (PoW) to proof of stake (PoS) in the Ethereum blockchain introduced new challenges. To
address the disparity between home stakers and sophisticated actors, Flashbots proposed the concept of Proposer Builder
Separation (PBS). Under PBS, the responsibility of proposing a block and building it is separated. This separation
involves several key players:

Today PBS is implemented by an opt-in service called MEV-Boost that validators choose to run to get MEV blocks. As part
of the Ethereum roadmap, the role of the relayer is expected to be integrated into the Ethereum protocol. This
integration aims to address centralization concerns and potential vulnerabilities.

MEV, or Maximum Extractable Value, encapsulates the various actions actors can undertake to generate profits. These can
be categorized broadly as follows:

Flashbots empowers Searchers to better capture these opportunities by enabling:

Flashbots, true to their mission, provide several outlets to provide visibility into the activity of the Flashbots
network. Some examples are:

All transactions in the following examples were verified using Flashbots API.

In this case, the searcher liquidated a massive AAVE debt position amounting to $610,730. To guarantee that the
liquidation transaction won’t get front-run the searcher used Flashbots to ensure the transaction was executed at the
beginning of the block, specifically at index 1 (as blocks execute in reverse order).

Despite the scale of the liquidation, it did not yield a profit for the searcher. The reason is, as the potential gain
increases, more bots submit bundles to the Flashbots network. Therefore, to secure the acceptance of their bundle,
searchers must propose a larger reward to the block builder, eventually leading to a situation where the majority of
profits are directed to the validator.

Liquidation Transaction Detail:0x0cb9ebecf5ed8fe318753e171000165eb2798ca15ca7810e9f4f95d97ad92c7a ｜ EigenPhi

In this example, an attacker sandwiched not only one but two victims trying to buy memecoins on Uniswap V2 DEX, making
$31,524 in profits. The attacker used Flashbots to ensure that his transactions sandwiched both victims.

Front Run Transaction: https://etherscan.io/tx/0x254d8d0f857ca85dd7b38731c0c6bf8b09fb1bfc29e362f9f2b6251b5d329da5
 Index 1 in the block

Victim 1: https://etherscan.io/tx/0xc0505eb5777383a78d127dcd60077eaaba3af3e16239586cda1c4ef70825e099 Index 2
in the block

Victim 2: https://etherscan.io/tx/0x01a3108d52726cbb324a935c083427e567f7e908c76daa21700bbdaa4477a466 Index 3
in the block

Back Run Transaction: https://etherscan.io/tx/0x69652dfa44cbaa27f9fbb4950c25198a700c2351e7f8a5028998bd49194e1814
 Index 4 in the block

Sandwich transaction detail: 0x6bfb989c7405cd0ea38a204e11ee08f1a538c2e976262cee092f0886061a722b

Private Transaction in the Nomad Hack On Aug 1st, 2022, the Nomad bridge, a cross-chain bridge between several
blockchains, was exploited, and approximately $190M in assets were stolen. See our previous blog post for a more
in-depth breakdown of the attack:


Combating Bridge Attacks: A Closer Look at the Attackers’ Preparations | Redefine: DeFi Risk Assessment and Mitigation for Investors

The attacker submitted his transactions to the network using Flashbots.

This is a screenshot of the first transactions in the 

As can be seen in the response from the Flashbots API:

Only the first three transactions in the block used Flashbots.

As can be seen, the very first transaction is the attackers using Flashbots to profit 100 WBTC from the Nomad contract.

The Following attack seems to already be an MEV bot that appears to have copied the attack and also uses Flashbots to
profit 100 WBTC.

The fourth transaction is the attackers, this time not using Flashbots. One might assume that this tipped off the MEV
bot and allowed it to copy the attack.

, there are already copy cats copy pasting the attack
data payload and profiting from the attack:

88% of addresses conducting the exploits were identified as copycats. Together, they stole about $88M in tokens from the
bridge.

This attack demonstrates the importance of attackers to executing their attacks using Flashbots. Otherwise, MEV bots can
easily copy the attack payload and beat the hackers to it.

 a vulnerability in Rari Capital's protocol, which did not
correctly record borrowed assets before allowing the withdrawal of collateral. Using flashloans, the attacker borrowed
ETH, withdrew their collateral, and kept the borrowed ETH, repeating this process for multiple tokens. The attack
resulted in a loss of around $79.7 million.

https://etherscan.io/tx/0xab486012f21be741c9e674ffda227e30518e8a1e37a5f1d58d0b0d41f6e76530

This attacker also used Flashbots to execute the attack:

Team Finance, a project that claims to specialize in project security and automation, was hit by


 due to a vulnerability in their smart contracts. This exploit allowed
an attacker to transfer locked assets from Uniswap v2 to a manipulated Uniswap v3 pair, resulting in significant profits
for the attacker. The attack caused a loss of $15.8 million, severely impacting several pools.

https://blocks.flashbots.net/v1/blocks?block_number=15838225

As can be seen, in this case, the attacker also used Flashbots to execute his attack.

https://etherscan.io/tx/0xb2e3ea72d353da43a2ac9a8f1670fd16463ab370e563b9b5b26119b2601277ce

This blog post delves into the development of MEV and the Flashbots network, providing a sense of the problem's
magnitude while exploring the impressive solutions developed by Flashbots and the Ethereum Foundation to better align
incentives and mitigate the unwanted side effects of MEV.

To protect oneself from different types of MEV, it's crucial to understand them. For instance, when trading on a DEX,
setting the slippage low and minimizing the price impact is essential. Exploring solutions like Flashbots' private
transactions can also protect against being sandwiched. For more information, check out
https://docs.flashbots.net/flashbots-protect/overview.

It's also essential for security solutions to recognize that they may not always have enough time to identify a pending
attack, especially if it's submitted through Flashbots. Finally, DeFi platforms should take MEV into account when
building applications to minimize MEV leakage.

In this post, we will explore the mint() and burn() functions, their objectives, associated risks, and how Redefine can safeguard its customers from these.

Understanding Mint and Burn Functions: Risks and Protective Solutions Mint function and its risks

 (Application Binary Interface) of a smart contract is an interface that defines how other contracts or external applications can interact with the contract. It includes the function names, input and output parameters, and their data types.

The functionality of a smart contract refers to the execution of code within the contract. This code is stored as bytecode and executed by the 

Think of it as a restaurant where the ABI is the menu, listing available dishes, descriptions, and prices, while the bytecode is the kitchen, executing the desired functions and logic based on the customers’ choices.

These functions are very common in tokens, and can be considered as a critical feature required to control their tokenomics. Nevertheless, when these functions are unprotected one accidental or ill-intentioned call is all it takes to destroy a token's value. Let’s go through two examples of unprotected mint() functions:

1. The owner can mint an unlimited supply:

Although this practice is commonly seen in token contracts, it introduces an attack vector that could result in wiping the token's value. In this scenario, one actor could maliciously mint an unlimited amount of tokens to his wallet, sell them, or use them for market manipulation and as a result, massively decrease the token's price. For example, In 2021, Levyathan.finance suffered an 

 where a malicious actor accessed a wallet's private keys on GitHub. The wallet had unlimited minting permissions, enabling the attacker to mint and dump 100,000,000,000,000,000,000,000,000 LEV tokens which led to a price drop to nearly 0, causing a $1.5 million loss.

This is a rare and much more dangerous occurrence than the previous one.
It means that anyone can call the mint() function and increase the total circulating supply of a token, which leads to a significant price drop. For example, let’s take this code snippet:

We can see that the _initMint () function is callable by any address except for the zero address. In the second part of this code, we can see that by calling this function, both the caller balance and the token’s total supply will increase, a behavior that could lead to a significant decrease in the token's price.

There is another example of this case in a decompiled 

, which means that only it’s bytecode is visible, with no ABI nor available source code:

By calling this function, anyone can inflate the token's total supply as they wish, with no limits, Which can lead to a decrease in the token price.

 engine provides an additional layer of security by detecting potential vulnerabilities in the mint() and burn() functions. As part of our analysis, Wev'e analyzed tens of thousands of tokens that were listed on Uniswap. During this process, we identified a troublesome 

 token, which was implemented by a well-known dApp. The dApp quickly addressed the issue following our detection.

We examine the bytecode of each contract and determine potential execution paths. By simulating various inputs and outputs, we can precisely identify security flaws. When our engine 

, it replicates the call on a local fork, allowing us to track changes in the total supply that might signal a security vulnerability.
Since our solution runs on the bytecode, it can 

bypass obstacles such as misleading function names or unverified contracts

 potential issues with any function that unreasonably affects the total supply, like unbounded mint calls, and promptly warn users about potentially risky tokens.
By using our symbolic execution engine, we can provide a safer and more secure environment for our users to transact with confidence.

As we know, the beauty of DeFi comes with multiple risks

, understanding the risks associated with functions that affect the total supply of a token could make us all a bit safer. Redefine’s security solutions protect users by detecting and mitigating potential vulnerabilities, providing a more secure and safer way to interact on-chain.
Want to learn more about our solutions? 

Learn how Redefine's cutting-edge feature automates monitoring token approvals for proactive security alerts. Discover the benefits of this tool and how to set it up in just a few easy steps.

Enhance Your Wallet Security with Redefine's New Approvals Monitoring Feature

In the ever-evolving world of blockchain technology, security is of the utmost importance. Ensuring the safety of your
digital assets requires constant vigilance, especially when it comes to managing token approvals. Redefine is excited to
introduce a game-changing feature to help you stay ahead of potential threats: Approvals Monitoring.

Approvals Monitoring is a cutting-edge feature that automates the process of monitoring token approvals across your
wallet ecosystem. With this powerful tool, you no longer need to manually check your token approvals using Redefine's
Approval Manager. Instead, Approvals Monitoring will proactively alert you if the risk profiles of any spenders change
or if a new approval is given to a risky spender.

To better understand the value added by Approvals Monitoring, let's explore two critical use cases:

Monitoring Hacked Contracts: Imagine using Dexible frequently and learning about a security breach hours after it
happened. With 35 wallets to manage, identifying the compromised contract address and searching for active approvals
associated with it would be a daunting task. Approvals Monitoring steps in by promptly alerting you of your exposure and
providing a link to revoke the specific approval on the affected wallets and chains.

Preventing Token Theft: Consider a scenario where you or one of your traders accidentally approves a transaction with a
malicious spender. Without knowing the spender's malicious intent, your tokens could be stolen within hours. Approvals
Monitoring immediately alerts you after a risky approval is signed, allowing you to take swift action and protect your
assets.

Redefine's Approvals Monitoring feature is a crucial addition to your blockchain security toolkit, offering proactive
monitoring and timely alerts to help you safeguard your digital assets. Stay ahead of potential threats and minimize the
risk of token theft by leveraging the power of Approvals Monitoring. Upgrade your security management process today and
experience peace of mind in the dynamic world of blockchain technology.

Add Wallets to Wallet Manager Once the user is on the WebApp, they perform 3 steps (illustrated in the image below).
Step 1 is to enter the 

. After this, Step 3 requires
them to add all the wallets that they want to monitor - wallets can either be added manually or uploaded in a batch as a
csv file.

In the users’ personal/organization Slack workspace, they will need to decide on an existing channel or create a new,
dedicated channel to which they want to receive alerts from Redefine’s Monitoring.

Activate Redefine’s Monitoring by using the 

 self-service set up flow in the web application:

3.1 Click your User Profile button and then “Slack configurations”

3.2 Select “Activate” next to “Redefine Monitoring”

The most advanced, user-friendly, and transparent solution for ensuring you are fully informed of all the risks   associated with your active token approvals.

Introducing dApprovals by Redefine

If you’ve ever signed transactions using a self-custodial wallet, such as Metamask, you’ve likely come across the
concept of ‘token approvals’. This is a built-in mechanism of DeFi, which permits a “spender” to transfer tokens out of
your wallet. In order to perform an action in DeFi that involves moving tokens using a dApp (e.g. swaps, lending,
liquidity provisioning, etc.) you will be required to give an approval.

Approvals are necessary for DeFi to function the way that it does - it’s not a bad thing! This being said, like many
elements of DeFi, there are risks involved. Approvals create weaknesses that can be taken advantage of. Regardless of
how good your custody solution is, an active approval allows another entity to move tokens out of your wallet.

If the “spender” that you’ve given approval to is a bad actor or gets compromised by a bad actor, they can and will take
your funds. This attack vector alone has resulted in hundreds of millions of dollars in stolen assets across DeFi since
just 2021.

At Redefine, we believe that you should be empowered with the necessary tools to fully understand and mitigate the risks
associated with your active token approvals.

This is why today, Redefine is launching


Setting the Standard for Defi Risk Assessment

Managing your token approvals is an essential part of mitigating the risks that you are exposed to through this
mechanism.

,
Redefine is introducing the most advanced, user-friendly, and transparent solution yet for ensuring you are fully
informed of all the risks associated with your active approvals and are empowered to take action and manage these
approvals in an easy way.

dApprovals uses Redefine’s enterprise-grade security engine and is available to everyone for free!
Connect your wallet and manage approvals across all supported chains.

When initially giving an approval, if the chain you’re operating on has modest gas fees, it may be worth giving approval
to a spender, setting allowances equal to the number of tokens you want to spend in a specific transaction. This way,
after the transaction, the approval has an allowance of 0 and is not vulnerable in any way.

By default, most approvals are given with ‘infinite allowances’, so after your transaction, you still have allowances
granted with the spender you gave approval to.

, you
have visibility into all of your allowances and current token balances and an easy way to set these allowances to 0
(i.e. “revoking” the approval). 

We’re committed to providing enhanced security and risk assessment in a way that is robust, reliable, and easy to
understand and use. dApprovals is built to support multiple chains, allowing you to manage multiple approvals easily,
right from your browser.

Understand risks, and protect your tokens with dApprovals

Token approvals are an essential component to DeFi, and with dApprovals by Redefine, you’ll have lightning-fast
assessment of the risks to your active approvals, and total visibility across chains.

With DeFi, you’re now in control. With dApprovals, you’ll never have to worry about losing tokens from this attack
vector ever again.