Uniswap Integrates Blockaid for Enhanced User Protection

Uniswap Labs, the firm behind Ethereum’s largest decentralized exchange, has integrated Blockaid’s on-chain detection and response technology as an additional layer of user protection.

Blockaid’s tool alerts users when interacting with tokens flagged as potentially malicious. The crypto ecosystem is rife with scams and fraud, largely due to the challenges of policing permissionless platforms that enable anyone to launch a token. This issue is often cited as a significant barrier to attracting long-term crypto users, prompting the industry to adopt software solutions to steer people clear of these dangers.

According to Blockaid CEO Ido Ben-Natan, nearly 60% of the tokens created in 2024 were identified as malicious. “In this environment, spotting these tokens is key to delivering on the promise of DeFi,” he stated.

“Token Warnings empower Uniswap App users to feel confident trading—they'll receive comprehensive information about their tokens across all of our products at once,” commented Uniswap product manager Medha Kothari.

The tool will be rolled out across Uniswap's web, mobile, and self-custody crypto wallet extensions. It utilizes a combination of static (e.g., comparing a contract’s source code to known viruses) and dynamic (e.g., using a virtual environment to test a contract) validation heuristics along with various machine learning functions to assess the legitimacy of tokens.

In particular, Blockaid has the capability to identify common scams such as celebrity impersonators and phishing schemes. It can also detect more sophisticated scams that do not rely on social engineering, like the “100% sell fee” scheme where a seller sets their fee equal to the purchase price, preventing a buyer from receiving the asset, even if it is authentic.

Founded in 2022, Blockaid is a web3 security firm that actively monitors suspicious activity across different blockchains. Its software has been utilized by platforms such as Coinbase, Stellar, and Metamask, and it has reportedly prevented over $4 billion in potential losses.

Investment firms Ribbit, Variant, Cyberstarts, Sequoia, and Greylock contributed to Blockaid’s total of $33 million in seed and Series A funding rounds.