Key Management Takes Center Stage in Onchain Vault Security

Onchain vault security is shifting its focus from smart contract vulnerabilities to key management, according to Sun Raghupathi, CEO of Veda. Instead of solely concentrating on code intricacies, attention should turn towards who holds the keys to these systems.

Raghupathi points out that recent high-profile breaches have not come from smart contract flaws but rather from human errors such as compromised private keys or inadequate operational security. This indicates a fundamental shift in the threat landscape where focus should now be on people and processes handling key management, rather than solely on the code itself.

Veda has successfully streamlined over $16 billion through its vault framework without any security incidents involving its smart contracts. Its standardized infrastructure enables developers and institutions to create yield products with embedded risk management and compliance controls. Kraken's Earn vaults built upon Veda's infrastructure have amassed over $600 million in deposits, with inflows exceeding $100 million since mid-2025.