QREDO: Reducing DeFi’s Risk Exposure
Users have access to a digital solution for safely storing and managing cryptocurrencies and blockchain assets through cryptocurrency wallets. Users are able to buy, sell, and receive bitcoins using these wallets. Many cryptocurrency wallets allow users to hold numerous cryptocurrencies, including Bitcoin, Dogecoin, Ethereum, and Litecoin, among many others.
While some cryptocurrency wallets may only handle a single cryptocurrency, others are multi-asset solutions. By demanding complex passwords and other security precautions, these solutions make sure that the only person or entity with access to the funds is the owner of the cryptocurrencies and blockchain assets.
As a “hedge fund manager”, it has never been simple to keep your Seed phrase (Private keys) safe in the face of all the fear and uncertainty that has plagued the past quarter 🙂.
Due to the high number of people involved, self-custody at the institutional level can be exceedingly risky and reduces the possibility of troubleshooting if a problem arises.
How do we Bring Institutions into DeFi;
We may all agree that institutional players are necessary for DeFi to grow, but where do they turn for security with this level of responsibility?
I think #QredoFixesThis but how? A case study on FBG Capital gives an insight.
FBG uses the Clearpool platform to access DeFi capital markets for lending and borrowing cryptoassets for use in its trading strategies.
Previously, the company used solutions such as MetaMask Institutional to interact with ClearPool, but found that the limitations of only having one single signer to approve transactions was incompatible with its institutional responsibilities.
With Qredo, FBG was able to maintain its access to MetaMask Institutional while gaining access to an institutional-compliant custody platform which offered as many approvers or signatories per transaction as needed.
Each trade typically involves multiple users including both portfolio managers and FBG’s compliance and back office teams, meaning that the firm could maintain access to its book of business on Clearpool while increasing the security for each trade.
If you read the case study above, you’ll agree with me that Qredo is a perfect option for Institutional player
- No private key risk; A customizable governance layer supported by decentralized Multi-Party Computation is used to replace vulnerable private keys (dMPC). Individual private keys for transaction signing are replaced by multi-party computation (MPC). The signature procedure is divided among several machines by MPC. Each computer is in possession of a piece of confidential information that corresponds to a portion of the key, and they work together to sign distributed transactions.
- Sophisticated governance; With controls and oversight permissions delegated to various organizational roles, including traders, approvers, administrators, and more, governance can be customized to meet the needs of your team.
The governance offered by dMPC, in contrast to multisig, is operationally flexible; signature thresholds can be simply changed, and permissions can be updated as the organization changes.
- Immutable logs; The Qredo blockchain immutably records every custodial activity, guaranteeing that transaction approval records cannot be changed. Additionally, the auditing logs may be immediately exported, which reduces the likelihood that suspicious transactions would go undetected.
Are you looking to create your own Qredo governance system?
When you open a Qredo Wallet, just choose an organization account and configure your signature methods and subaccounts to match your needs.
Qredo is a radical new blockchain infrastructure that delivers interoperability, lightning-fast settlement, and decentralized custody.
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