Hypernative’s new solution gives asset managers and compliance teams real-time visibility into liquidity pool toxicity—before, during, and after execution—enabling safer onchain participation and regulatory confidence
DeFi's core strengths—permissionlessness and composability—enable groundbreaking innovation, but also allow tainted funds to flow freely through liquidity pools. But as the saying goes, the dose makes the poison. Hypernative’s new Liquidity Pool Toxicity Monitoring solution makes that toxicity visible, letting asset managers and compliance professionals set their own exposure thresholds and giving them the tools to assess and mitigate risks in real time.
Liquidity pools are fundamental to the Web3 economy, enabling decentralized trading, lending, and a myriad of other financial activities. But the anonymous and open nature of these pools can also present risks, including exposure to illicit funds or sanctioned entities. At this stage of crypto adoption, monitoring pool toxicity is no longer optional—it is essential to making DeFi safe, compliant, and ready for institutional scale.
We're at an inflection point where institutional capital is ready to enter DeFi at scale, but only if proper risk management infrastructure exists.
With Liquidity Pool Toxicity Monitoring, we’re addressing one of the most fundamental blockers to safe DeFi participation. This launch is not just a product milestone—it’s a critical building block for Web3’s next chapter of institutional adoption.
Gal Sagie
Co-founder & CEO @ Hypernative
Hypernative provides comprehensive liquidity pools monitoring from pre-transaction research, through funds deployment to continuous post-deployment alerting and automated decisioning, ensuring regulatory compliance, protecting assets from illicit activities, and enabling safer DeFi participation. Armed with these tools, asset managers and security and compliance professionals can:
Start by setting your overall threshold for illicit funds and defining which of the flags signify illicit activity to you. The options range from sanctions and fraud and phishing to hacks and exploits, mixers, and terrorism financing. It is also possible to specify the number of hops that should be taken into account. Then simply choose from available pools or manually enter an address to see the overall toxicity levels and the results for each flag as well as a recommended action.
Liquidity Pool Toxicity Monitoring is powered by Hypernative Screener, which provides real-time address reputation across a wide range of chains. The Screener was created to address shortcomings of traditional compliance approaches which fail to detect many incidents, take several days to update their databases, and are overly reliant on API integrations.
Hypernative Screener identifies risks against the user's own defined rules using real-time and unique ML-driven detections from on and offchain data sources, indicating exposure to sanctions, involvement in hacks and exploits, interactions with mixers and more. The tool assesses address reputation across all blockchains it is active on with a single call using real-time multi-asset screening.
Hypernative is a real-time monitoring, risk detection and automated response solution that identifies threats with high accuracy and gives customers precious minutes to respond before exploits can do damage. The platform tracks both onchain and offchain data sources and uses battle-tested, sophisticated machine learning models, heuristics, simulations, and graph-based detections to identify over 300 risk types, from smart contract hacks and bridge security incidents to frontend compromises, market manipulations and private key theft.
Reach out to get a toxicity score for your pool of interest, tune into Hypernative’s blog and our social channels to keep up with the latest on cybersecurity in Web3.
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