Key Management Trumps Smart Contract Bugs as On-Chain Vault Threat

Veda's CEO Sun Raghupathi says the biggest threat to on-chain vaults isn't smart contract exploits, but rather key management and human error. He argues that as smart contract code matures, the attack surface shifts from code vulnerabilities to operational failures.

Raghupathi points to recent high-profile incidents where compromised private keys or insider threats were the cause of security breaches, not technical flaws in the protocols' contracts. Veda's own infrastructure has seen over $16 billion routed through it without a reported smart contract incident.

Veda builds standardized vault infrastructure that integrates compliance and risk controls for developers and institutions. Its client Kraken has accumulated over $600 million in deposits on its Earn vaults, with $100 million in inflows since June 2025.