Rug Pull Defense 101: 3 Essential Tools to Keep Your Web3 Investments Secure

As the world moves towards a more decentralized and open internet, the security risks associated with Web3 applications have become more apparent. One of the biggest risks for users is the possibility of rug pulls, where bad actors create a fraudulent project or token, lure in unsuspecting investors, and then abscond with the funds. In this article, we will discuss how to protect yourself from rug pulls using tools such as Stelo, Wallet Guard, and RevokeCash. 

‍

Stelo: 

Stelo is a tool that helps users understand the details of transactions and signatures before they initiate them. Its primary goal is to provide peace of mind and confidence to users while they are using a Web3 product. 

‍

Stelo works in three ways: 

1. Simulation and Interpretation - Stelo simulates transactions and interprets signatures to understand the state changes being made by the interaction. This includes assets entering and leaving, approvals being set or revoked, etc. 
2. Enrichment - Stelo enriches any relevant entities such as contracts, assets, and addresses with contextual information, such as labels, prices, links, images, ENS names, owned NFTs, etc. 
3. Risk Analysis - Stelo evaluates the risk of any interaction and alerts the user if any malicious patterns or addresses are detected. It includes risk factors that a user should be aware of, such as when interacting with a newly deployed contract. 

‍

What's Possible with Stelo: 

Stelo's API allows developers to create user experiences that provide greater clarity and understanding of the transactions taking place. Some examples of what is possible with Stelo include: 

‍

1. Labeling and categorizing transactions in a user-friendly way, such as "Buying an NFT," "Staking ETH," or "Withdrawing Funds." 
2. Providing a clear breakdown of the fees associated with each transaction, including gas fees and transaction fees. 
3. Displaying relevant information about the assets being exchanged, such as their price, market cap, and performance over time. 

‍

Overall, Stelo aims to create safer and more human-centric Web3 products, providing users with a better understanding of what they are signing up for and increased confidence in using these products.

‍

Wallet Guard: 

‍

Wallet Guard is an open-source browser extension designed to provide multi-layered protection to users against phishing attempts, fraudulent mint websites, and other security threats. 

‍

It works in two ways: 

1. Proactive URL Scanning - Wallet Guard's machine learning algorithms detect suspicious activity before bad actors can get to the user's crypto assets. This includes phishing attempts, websites with low trust, unverified marketplaces, and scams. 
2. Transaction Simulation - Wallet Guard provides human-readable insights on every transaction, allowing the user to know exactly what is going in and out of their wallet. This includes protecting against malicious approvals, wallet drainers, and fraudulent mint websites. 

‍

How Wallet Guard Protects Your Assets: 

Wallet Guard does not connect to the user's wallet directly. Instead, it simulates transactions without any direct interaction with the wallet. The user's preferred wallet extension cannot communicate with Wallet Guard or any other extension, preventing private keys or seed phrases from being exposed. 

‍

Transactions are simulated by passing transaction data between dApps and the user's wallet via the window.ethereum object in the browser. Wallet Guard then proxies window.ethereum to run a simulation on the transaction data without modifying anything in the request. This never requires any access to the user's wallet extension or the underlying wallet.

‍

RevokeCash: 

‍

RevokeCash is a tool designed to help users take back control of their wallet by revoking the allowances they have granted to dApps like Uniswap or OpenSea. When a user grants permission to a dApp to spend their tokens or NFTs, this is called an allowance. If the user does not revoke these allowances, there are certain risks that they need to be able to mitigate.

‍

When using dapps like Uniswap or OpenSea, you have to grant them permission to spend your tokens and NFTs. This is called an allowance. If you don't revoke these allowances, the dapp can spend your tokens forever. Take back control by revoking your allowances. 

‍

RevokeCash is a platform that helps you manage your allowances and take control of your wallet. 

‍

Here's how it works: 

‍

1. Connect To get started with RevokeCash, simply click "Connect Wallet" on the top right or enter your wallet address in the search bar. RevokeCash supports wallets such as MetaMask, WalletConnect, and Portis. 
2. Inspect Once you're connected, you can inspect your allowances by using the network selection, sorting, and filtering options. This allows you to see which dapps have access to your tokens and NFTs. 
3. Revoke To revoke an allowance, simply click the "Revoke" button next to the dapp you want to remove access from. This will prevent unwanted access to your funds. 

‍

Why You Should Use RevokeCash. 

‍

1. Limit your allowances It's always good to limit your allowances whenever you're not actively using a dapp, especially for NFT marketplaces. This reduces the risk of losing your funds to hacks or exploits and can also help mitigate the damage of phishing scams. 
2. Take action after getting scammed Unfortunately, scammers try to trick you into granting them an allowance to your funds. If you fall victim to a scam, you can sort your allowances by the most recent to find out which allowances are to blame and revoke them to prevent further damage. Keep in mind that it's not possible to recover funds that have already been stolen. 
3. Use the RevokeCash browser extension Prevention is better than mitigation. The RevokeCash browser extension warns you when you're about to sign something potentially harmful. This can save you from phishing scams by making you think twice about what you're doing.

‍

Revoke.cash is an important tool for protecting yourself from rug pulls because it helps you take control of the permissions you have granted to dApps. It is always a good idea to limit your allowances whenever you are not actively using a dApp, especially for NFT marketplaces. This reduces the risk of losing your funds to hacks or exploits and can also help mitigate the damage of phishing scams. 

‍

Additionally, Revoke.cash can be used after getting scammed. Very often, scammers try to trick users into granting them an allowance to their funds. Sorting allowances by most recent can help identify which allowances are to blame and revoking them can prevent further damage. Unfortunately, it is not possible to recover funds that have already been stolen, but Revoke.cash can help prevent future losses. 

‍

Finally, users can also use the Revoke.cash browser extension, which warns them when they're about to sign something potentially harmful. This can save users from phishing scams by making them think twice about what they're doing. 

‍

In conclusion, protecting yourself from rug pulls is an important aspect of participating in the Web3 ecosystem. By using tools like Stelo, Wallet Guard, and Revoke.cash, users can take control of their interactions with dApps, simulate transactions to identify potential risks, and revoke allowances they have granted to dApps. These tools can help users feel more confident and secure when interacting with the blockchain, and ultimately make the Web3 ecosystem more accessible and user-friendly.