Radiant Capital improves its security system

On November 1, the lending protocol Radiant Capital announced a series of improvements aimed at enhancing security. Specifically, a time-locked ownership transfer was integrated into the contract, including a mandatory 72-hour waiting period for any changes.

This measure strengthens the protocol's security, giving users more time to respond to potential threats.

Introduction of a New Position

The team also introduced the role of an emergency administrator, operating through a multisignature system. This role has the authority to pause or resume lending markets in case of emergencies.

The creation of this role helps to quickly respond to crisis situations and minimize the risk of losses.

System changes

The Radiant Capital decentralized autonomous organization (DAO) has updated its multisignature protection system. Now, seven signers are required for transaction approval, with a minimum threshold of four out of seven. This approach enhances security, reducing the risk of hacking or unauthorized access to funds.

Advantages of use

Multisignature wallets are a crucial tool for safeguarding crypto assets, as they require multiple signatures to process transactions.

This eliminates the risk of a single point of failure that occurs when only one private key is used. Thus, the system becomes more resilient to external threats.

Reasons for increased security

The enhancements became necessary after a serious incident: on October 16, Radiant Capital halted its lending markets due to an exploit that resulted in a loss of $58 million in digital assets. The hack was caused by cyberattacks on BNB Chain and Arbitrum, which highlighted the system's vulnerabilities.

Security expert Patrick Collins described this incident as a “$50 million lesson” that the entire decentralized finance (DeFi) sector should remember.

According to Collins, there is a significant lack of knowledge and tools for verifying transactions using hardware wallets.