Summary
This document is a technical report detailing the security measures implemented by 1inch to protect users in the decentralized finance (DeFi) ecosystem. It outlines the challenges posed by illicit activities in DeFi, such as money laundering and fraud, and describes how traditional anti-money laundering measures are not applicable. The report presents the 1inch Shield API, a SaaS offering designed to create a secure environment against bad actors. It details various tools and technologies utilized, including an internal blocklist program, address screening, and collaboration with law enforcement. The report explains the role of community collaboration in maintaining the blocklist and highlights the integration of cybercrime intelligence solutions to enhance security. Additionally, it discusses user protection measures such as transaction simulation and malicious token detection, aimed at safeguarding users from potential threats. The report emphasizes the importance of continuous evaluation and adaptation of security measures in response to evolving risks in the DeFi landscape.
