How to Protect Yourself and Prevent Being Robbed

By NuDEX | Features NuDEX | 29 Mar 2025


Asset Guardian: Institutional Security in Decentralized Exchanges

We are just a few days away from the launch of our mainnet, and users who want to earn NuStars at this stage will be able to exchange them 1:1 for USDT and will also receive many more prizes. It's a kind of "airdrop" where you will know how much you are earning ahead of time. 1 NuStar = 1 USDT. There are only a few days left to accumulate NuStars on the testnet. Once the mainnet launches, the difficulty will increase to almost 10x.

Register and start earning with decentralization. https://nudex.io/

Spoiler: we will also launch our own $Nuvo Token. In addition to earning NuStars, you will accumulate points toward the $Nuvo token distribution.

Introduction

Security is one of the main concerns in the cryptocurrency ecosystem for retail users and, more recently, for institutional users. As centralized exchanges (CEXs) have demonstrated significant vulnerabilities over the years, decentralized exchanges have emerged as a more secure and transparent alternative. Nevertheless, the protection of user assets remains a critical concern in the sector and for new entrants. This is where Asset Guardian comes in, a mechanism based on the Threshold Signature Scheme that redefines security in DEXs, ensuring full control of assets without compromising the user experience. See how NuDEX incorporates this system into its service.

 

The Threshold Signature Scheme is a multi-signature cryptographic scheme that allows off-chain transactions without revealing the private key. Instead of a single key, TSS uses a key that is divided into multiple parts. Transactions are designed to split the key into multiple pieces, thus minimizing the risks of theft or security. This mechanism is tailored to decentralized ecosystems, and its distinguishing feature is security and full user control.

TSS has the following characteristics:

  • Security for institutions; Shared responsibility: By distributing the responsibility for the signature among multiple parties, dependence on a single entity is avoided, thus preventing potential hacks.
  • Immunity to attacks: The possibility of a single storage location for a private key is negated by the key fragmentation model used.
  • Easy authorization management: Institutions can set the policies they want without affecting the efficiency of their transactions or even their privacy.

Comparison – CEX vs. DEX in Asset Security

Centralized Exchanges

Cyberattack Risk: Historically, CEXs like Mt. Gox, FTX, and Binance have been victims of various attacks, resulting in losses in the millions. The most recent attack on Bybit, for $1.4 billion, is worth mentioning.

Third-Party Reliance: Users deposit their funds with a centralized entity that controls the private keys.

Risk of Fund Freezing: Funds can be blocked or seized by regulations or by the exchanges themselves. This is subject to changes in governments, changes in company policies, and any regulations that may apply to a CEX.

Decentralized Exchanges with Asset Guardian: DEXs like NuDEX offer greater security and ownership of user assets by eliminating intermediaries.

By integrating TSS into Asset Guardian, NuDEX goes a step further:

Distributed User Control: There is no centralized entity that can seize or access user funds.

TSS-based multi-signature: Potential single points of failure are eliminated, reducing the concentration of effort to compromise private keys.

On-chain transparency and auditability: All transactions are auditable without any third party on the blockchain.

Other market solutions.

Several other projects have integrated similar mechanisms to improve the security of DEX assets: Fireblocks: The combination of MPC and TSS for digital asset custody is primarily aimed at institutions.

Zengo Wallet: A non-traditional key management wallet powered by TSS that improves the security level for the average user.

Gnosis Safe: Enables decentralized fund management using multi-signatures, without the level of transaction speed optimization of TSS.

NuDEX with Asset Guardian integration: Security without sacrificing efficiency. By integrating Asset Guardian with TSS, NuDEX provides institutional-grade security without sacrificing user experience. Unlike other DEXs that still rely on individual private keys or traditional multi-signature setups. Improved usability: No complicated multisig wallet setup required.

Optimized performance: Unlike traditional multisig, TSS enables faster transactions without compromising security.

Guarantee of complete decentralization: No single entity has authority over signatures, in line with DeFi principles.

Summary

The security of assets on an exchange is a fundamental aspect of its adoption. While CEXs remain vulnerable to hacks and centralized regulation, cutting-edge DEXs like NuDEX are reinventing security with Asset Guardian and TSS. This approach not only safeguards user funds but also sets a new standard in the DeFi industry for digital asset protection.

 

How do you rate this article?

2


NuDEX
NuDEX

NuDEX, decentralized exchange specialized in the trading of listing derivatives. It offers a low gas trading experience, setting a new standard in the registration market. Your trades, your rules. NuDEX.


Features NuDEX
Features NuDEX

Here we will inform about all our features, updates, we will explain how our technology works and we will analyze the advantages of NuDEX compared to CEX and DEX

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.