Blockaid Brings Onchain Monitoring to Atomic Digital's DeFi Portfolio

Executive Summary

Atomic Digital is a market-neutral, multi-strategy hedge fund serving professional and institutional investors. The firm combines quantitative trading with OTC structured products, protocol deals, and actively managed DeFi portfolios, with a team bringing more than 20 years of combined experience managing institutional capital. Atomic Digital describes its approach as capturing structural inefficiencies, targeting consistent, risk-adjusted returns.

Atomic Digital has deployed Blockaid's Onchain Monitoring on its DeFi portfolio. Monitors follow the fund's positions, the wallets that hold them, and the lending markets, vaults, and trading venues underneath them, and coverage extends as allocations change. Detections for protocol exploits, anomalous fund movement, and dependency behavior that departs from a venue's normal activity reach the team in real time.

A fund that allocates onchain inherits the security surface of every protocol it enters. Capital sits in contracts the fund does not operate, exposure shifts when a strategy underneath a position changes, and exploits unfold in minutes, on no schedule. Blockaid shortens the distance between an attack starting and the fund knowing, so the team can unwind a position while the window to act is still open. With Blockaid, Atomic Digital operates with the continuous monitoring investors expect of institutional asset managers.

The Partnership: Real-Time Monitoring for an Actively Managed Portfolio

A fund's DeFi exposure lives in infrastructure other teams built. Strategies spread capital across venues, each one a separate codebase with its own admin keys, upgrade paths, and oracle dependencies, and a failure in any of them can reach the positions inside. Watching that surface manually means tracking every venue's contracts, governance, and flows around the clock.

With Blockaid, the fund's team can now:

• Monitor a portfolio that moves. Positions, the wallets that hold them, and the protocol contracts underneath are tracked as one continuously updated inventory, with new targets added as strategies enter new venues. For a multi-strategy fund, coverage keeps pace with allocation decisions.
• Detect what threatens the positions themselves. Detection flags protocol exploits, abnormal flows out of the venues holding the fund's capital, and oracle or dependency activity that breaks from how a venue normally behaves. Risk that once became visible only after funds moved now surfaces as it develops.
• Investigate from a decoded starting point. Each alert arrives with the contracts involved, the flows that triggered it, and severity attached, so the investment team weighs its response to the event itself rather than reconstructing what happened. For a lean team, interpretation stops being the bottleneck between an alert and an action.
• Respond the moment a detection fires. Alerts land in the fund's day-to-day messaging in real time, carrying the affected venue and the severity of the event. For the fund, responding means unwinding exposure while the event is still unfolding, and that window opens with the alert.

Now that Onchain Monitoring is live, coverage extends to each new position as the fund opens it, and the team's attention stays on the trade.

Learn more about Onchain Monitoring →

Looking Ahead: Funds Are Bringing Institutional Capital Onchain

Asset managers are moving onchain at speed, with funds sourcing yield, liquidity, and trading opportunities directly from DeFi protocols.

Inflow builds as performance track records accumulate and access products mature, opening routes into onchain markets for allocators that could not touch them before, and the capital following those routes arrives with institutional expectations attached. Funds that can demonstrate operational control over their onchain exposure are positioned to capture that inflow.

The risks concentrate along with the capital. The protocols holding fund deposits can be exploited, the price feeds strategies depend on can be manipulated, and a venue's failure can reach every position inside it. Continuous monitoring changes what those risks cost. A fund that sees an attack as it starts can exit the position before the damage reaches it, and one that sees its exposure in real time can underwrite venues that manual oversight could not. 

This is the case Blockaid's View on Security makes, that as capital moves onchain, security has to run at the chain's own speed, and monitoring at that speed is part of how onchain asset management scales.

Learn more about Blockaid's View on Security →

About Blockaid

Blockaid is the onchain security platform trusted by the largest companies operating in Web3. Built by veterans of elite intelligence and cybersecurity units, Blockaid provides end-to-end protection for financial institutions, protocols, and end users, combining direct wallet and dApp integrations with real-time monitoring, detection, and response across smart contracts, infrastructure, and externally owned accounts. Since 2025, Blockaid scanned over 6.3 billion transactions and blocked 585 million attacks. Blockaid is the security infrastructure behind Coinbase, MetaMask, Uniswap, Safe, and dozens of the most widely used platforms in the industry.

Learn more at blockaid.io, and follow us on Twitter and LinkedIn.