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May 7th, 2025

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In the fast-evolving world of decentralized finance (DeFi), security and scalability are paramount. For Tunnl, a forward-thinking decentralized exchange (DEX), achieving these goals while maintaining operational efficiency was a critical challenge—until they partnered with io.finnet and integrated io.finnet into their treasury management and trading operations. This collaboration has not only fortified Tunnl’s security but also set a new benchmark for institutional-grade asset management in the DeFi space.

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The Challenge: Balancing Security and Agility in a High-Stakes Environment

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As a DEX handling high volumes of cryptocurrency transactions daily, Tunnl faced a familiar set of hurdles in the crypto industry:

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1. Security Vulnerabilities: Traditional custody solutions often relied on single points of failure, leaving assets exposed to hacks or internal mismanagement—risks that high-profile failures like FTX and BlockFi have made all too real.
2. Crosschain Complexity: Managing assets across multiple blockchain networks was previously impossible, requiring wrapped assets and risky bridges.
3. Scalability Constraints: As transaction volumes grow, Tunnl needed a solution that could scale seamlessly without compromising security or adding operational overhead.

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For Tunnl, these challenges weren’t just technical—they were existential. A DEX thrives on trust, and any breach or inefficiency could erode user confidence and stall growth. They needed a partner that could deliver military-grade security, streamline operations, and align with their vision of a decentralized, trustless future.

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The Solution: io.finnet’s Trustless MPC-Powered Self-Custody

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Enter io.finnet and our flagship product, io.vault—a self-custody solution built from the ground up for institutions like Tunnl. Unlike traditional custodians that hold private keys or rely on third-party trust, io.finnet leverages our proprietary Trustless Multi-Party Computation (tMPC) technology to eliminate single points of failure and empower clients with full control over their digital assets.

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Here’s how io.finnet transformed Tunnl’s operations:

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• Unmatched Security with tMPC: io.finnet’s tMPC distributes weighted signing authority across multiple participants, ensuring that no single individual—or even io.finnet itself—can access or move funds unilaterally. For Tunnl, this meant their assets were protected by advanced cryptography, audited by Kudelski Security, and secured against both external threats and internal risks.
• Flexible Key Share Distribution: Tunnl tailored io.finnet’s signing structure to their organizational needs. With a threshold configuration requiring approval from key stakeholders (e.g., 8/12 shares split between compliance, management, and a Virtual Signer), they achieved a balance of security and operational agility. The Virtual Signer, running in a secure Intel SGX enclave, automates transaction approvals within predefined policies, reducing manual oversight without sacrificing control.
• Multi-Chain Mastery: Supporting leading assets like Bitcoin (BTC), Ethereum (ETH), and Tron (TRX), as well as DeFi integrations via WalletConnect, io.finnet provided Tunnl with a unified platform to manage assets across chains. From ERC-20 tokens on Ethereum to native assets on emerging chains, io.finnet’s dashboard offered real-time visibility and seamless transaction signing.

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The Results: A Secure, Scalable Foundation for Growth

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Since integrating io.vault, Tunnl has seen transformative outcomes that underscore the power of io.finnet’s technology:

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• Enhanced Trust and User Confidence: By adopting io.finnet’s trustless self-custody model, Tunnl eliminated reliance on third-party custodians, positioning themselves as a leader in DEX security. Users now trade with the assurance that their assets are safeguarded by cutting-edge cryptography—not vulnerable key storage.
• Streamlined Operations: Using io.finnet’s virtual signer technology allowed Tunnl to integrate direct smart contract to MPC Vault interactions, allowing for secure, bridgeless DeFi. What once took hours across multiple platforms now happens in minutes, freeing up resources for innovation and growth.
• Scalability Unlocked: With io.finnet’s ability to instantly set up unlimited vaults and adapt to rising transaction volumes, Tunnl scaled their operations without the bottlenecks of legacy systems. The Virtual Signer’s policy enforcement ensured compliance and security kept pace with growth.
• Cost Efficiency: By minimizing gas costs through tMPC’s single-signature output and reducing dependency on external custodians, Tunnl optimized their financial operations, redirecting savings into platform enhancements.

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“io.finnet has been a cornerstone of our mission to redefine DEX security,” said Constantino Heredia, founder of Tunnl. “The flexibility of tMPC and the seamless integration into our workflows have allowed us to offer our users a secure, transparent experience while staying ahead in a competitive market. io.finnet isn’t just a vendor—they’re a partner in our vision for decentralized finance.”

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Why io.finnet Stands Apart

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Tunnl’s success with io.vault highlights what sets io.finnet apart in the crowded field of digital asset management:

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• True Trustlessness: Unlike competitors, io.finnet never holds key shares, ensuring clients like Tunnl retain full sovereignty over their assets.
• Enterprise-Grade Flexibility: From customizable thresholds to multi-chain support, io.finnet adapts to the unique needs of businesses, not the other way around.

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Looking Ahead: A Blueprint for DeFi Innovation

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The partnership between Tunnl and io.finnet is more than a success story—it’s a blueprint for how DeFi platforms can thrive in an era of heightened security demands and regulatory scrutiny. By leveraging io.finnet, Tunnl has not only fortified their operations but also positioned themselves as a trailblazer in decentralized exchange security.

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At io.finnet, we’re proud to support visionaries like Tunnl as they push the boundaries of what’s possible in digital finance. Ready to see how io.finnet can transform your business? Get started today to learn more.

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