UTONIC Protocol and TonBit have joined forces to bolster the security of the TON and Telegram ecosystems. This initiative aims to counter vulnerabilities and implement new security standards.
Vulnerabilities of the TON and Telegram Ecosystem
On November 16, the popular Telegram trading bot DEXX.ai faced a severe attack on its data server, leading to the leakage of user custodial wallets and millions of dollars in losses. UTONIC Protocol discovered that the common method of storing private keys used by Telegram Trading Bots is centralized, making it vulnerable. Partnering with TonBit, UTONIC proposes a safer solution using MPC and AVS for the trading bots.
Decentralizing Private Key Storage with MPC and AVS
UTONIC introduces a hybrid MPC + AVS approach, combining decentralization and security for trading bots. User private keys are divided into three shards held by the user’s device, the trading platform, and UTONIC’s AVS network. Each transaction requires a '2-of-3' multi-signature, ensuring no single party can access user funds. AVS serves as a trusted layer, enhancing security through staked assets in insurance pools.
Comprehensive Security Strategy
UTONIC provides a solution based on periodic asset snapshots to ensure secure verification. The AVS API allows projects within the TON ecosystem to selectively scan and verify critical modules, reducing attack risks. Examples of application include minimizing risks in gaming through random number generators and decentralized storage, as well as in finance through decentralized storage and verification of transactions.
The collaboration between UTONIC Protocol and TonBit sets a new security standard for the TON ecosystem. This initiative enhances confidence in applications and supports seamless integration into the ecosystem.
