#What is shifting the risk landscape in onchain vaults?
The crypto industry has long been concerned about the risks associated with smart contract vulnerabilities. However, Sun Raghupathi, the CEO of Veda, suggests a necessary shift in perspective. Instead of focusing solely on the intricacies of Solidity code, attention should turn towards who possesses the keys to these systems. As the technology matures and smart contracts undergo extensive testing and auditing, it becomes increasingly evident that human factors play a larger role in security.
#Are smart contract exploits still the biggest concern?
Raghupathi raises an important point. Numerous high-profile breaches recently have not derived from smart contract vulnerabilities but rather from human errors, such as compromised private keys or inadequate operational security. This indicates a fundamental shift in the landscape of threats where the focus should now be on the people and processes handling key management, rather than solely on the code itself.
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#How does Veda contribute to onchain vault security?
Founded in 2024, Veda has successfully streamlined the transfer of over $16 billion through its vault framework without any security incidents involving its smart contracts. This achievement reflects the company's commitment to security and operational excellence.
Veda's standardized infrastructure enables both developers and institutions to create yield products while embedding essential risk management and compliance controls within their frameworks. One notable client is Kraken, whose Earn vaults, built upon Veda's infrastructure, have amassed over $600 million in deposits. These vaults have seen a remarkable uptick, drawing in more than $100 million in inflows just since mid-2025.
#Why do key management and compliance matter in institutional DeFi?
For hedge funds or asset managers considering participating in onchain yield products, it is crucial to evaluate not only the smart contract audit reports but also to investigate the entities holding admin keys, how these keys are secured, and the configurations in place for multisig wallets. Furthermore, they must consider the repercussions if a key holder were to act unethically or gets compromised.
Veda's model, which integrates compliance and risk controls directly into its vault infrastructure, addresses these critical concerns effectively. The capital accumulated in Kraken's Earn vaults serves as proof positive that institutional players trust Veda’s solutions. A regulated exchange like Kraken would never allocate substantial funds to infrastructure that hadn't been thoroughly vetted, and the continuous inflows indicate a robust endorsement of Veda's offerings.