How Hypernative Secures a $40B Stablecoin Economy

Stablecoins are one crypto application that has already found a product-market fit, according to a16z's State of Crypto 2024 report. Stablecoins account for a third of daily active addresses in Web3 and were responsible for $8.5T of transaction volume in Q2 alone. With that success comes the challenge of protecting a stablecoin economy that spans the entirety of Web3. 

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Lifeblood, backbone, cornerstone -- call it what you will, but there is no Web3 without stablecoins. Hypernative is really the only company with the infrastructure, expertise and experience necessary to handle the enormous task of monitoring the stablecoin economy in real time.

Gal Sagie, co-founder, Hypernative

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The popularity, ubiquity, and sheer economic scale of stablecoins also make them a target for hackers, scammers, and fraudsters. Hypernative enables stablecoin issuers to tackle their three biggest security challenges: 

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1. Addressing threats across a vast Web3 infrastructure, much of which outside of the issuer's control;
2. Stopping scams by accurately and rapidly identifying impersonators;
3. Tracking illicit activity across multiple chains to ensure compliance.
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Protect Your Core Contracts

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‍Hypernative helps secure more than $40B worth of stablecoins, with $500B monthly transfer volume, and 17M holders across 12 networks.

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The Hypernative Platform uses battle-tested, sophisticated machine learning models, heuristics, simulations, and graph-based detections to identify threats with high accuracy. The system detected 99.5% of hacks last year with less than 0.001% false positive rate and saved more than $500M of funds to date.

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Stablecoin issuers use Hypernative's real-time detection to identify threats and any malicious activity directly or indirectly related to their tokens anywhere they are used or traded, across smart contracts and protocols, bridges, wallets, and more. 

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The platform can also be used for governance monitoring, issuing alerts for unexpected contract upgrades or risky multisig and DAO proposals. Alerts can be linked to automated actions, including pausing a contract, moving funds to cold storage, and changing protocol parameters.
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Stop Impersonators

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Hypernative detects and flags look-alike smart contracts across over 40 chains to prevent scams and stop phishing attempts. The Hypernative platform's phishing-related real-time alerts include:

• Approve/permit/transfer to known phishing addresses;
• Funding of new phishing address;
• New phishing contract deployment;
• Suspected malicious permit execution;
• And more.
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Ensure Compliance

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Stablecoin and synthetic dollar issuers need to track all illicit activity involving their tokens by holders, protocols and projects for reputation management and compliance. Hypernative can help by flagging and blocking non-compliant activity, including:

• involvement with mixers;
• targets of government sanctions (OFAC and OFSI);
• involvement in hacks;
• and more.

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Multichain presence is a must for stablecoin adoption. Hypernative enables issuers to monitor all networks where their contracts are deployed and track all hops of illicit funds. The team is constantly expanding the scope of its blockchain monitoring, recently adding Bitcoin, Solana, Stellar, Cardano, Stacks, Cosmos (Injective, Sei), THORChain, and Tron to its existing coverage of 40 chains.

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Monitoring Fiat Ramps With Hypernative Screener

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Hypernative Screener screens addresses and correctly identifies risks prior to authorizing transactions. It provides address reputation across multiple chains, indicating sanctions, involvement in hacks and exploits, interactions with mixers and more.

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Stablecoin issuers can use Hypernative Screener to perform compliance checks by monitoring conversions to and from fiat. Processing of stolen funds or accepting deposits to sanctioned or malicious addresses exposes issuers to potential liability. Hypernative detects incidents like fraud, scams, hacks, and exploits continuously, ensuring real-time compliance across multiple blockchains.

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Using Custom Agents to Track Abnormal Behavior

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Increasing regulatory scrutiny of stablecoins is motivating issuers to better understand any abnormal behavior involving their tokens. Hypernative Platform offers access to over 300 custom agents, user-defined proprietary logic that can be used to detect a wide range of on- and offchain behaviors. The examples of alerts include:

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• A transfer involving a large proportion of circulating supply;
• Outflow or inflow over a set threshold over specified time;
• Big balance changes;
• First-time wallet interactions; 
• And more.

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Stablecoin issuers are part of over 150 Web3 projects that already rely on Hypernative’s real-time enterprise-grade platform that monitors over $37B worth of digital assets. The list includes Balancer, Blockdaemon, Chainalysis, Chainlink, Circle, Consensys, Ethena, Etherfi, Galaxy, Linea, Quantstamp, Solana, Starknet, and Uniswap.

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Reach out for a demo of Hypernative’s platform, tune into Hypernative’s blog and our social channels to keep up with the latest on cybersecurity in Web3.

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Secure everything you build, run and own in Web3 with Hypernative.

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