The rise of blockchain technology has opened the curtains for new opportunities, including decentralized finance (DeFi) applications governed by smart contracts. These protocols leverage decentralized networks and cutting-edge tech to bring innovative financial services to the masses.
By eliminating middlemen such as banks, DeFi projects bring lucrative earning opportunities and enable anyone to participate in traditional financial activities. These platforms provide for example, decentralized lending/borrowing access that benefits millions of unbanked folks worldwide.
Moreover, investors seeking huge returns find the DeFi sector very attractive, as it offers high-interest rate savings unmatched by traditional financial institutions.
Unfortunately, the colossal total volume locked (TVL) in DeFi has brought several security concerns. Users have lost billions of dollars to cybercriminals targeting various platforms, spooking potential investors looking to jump onto the DeFi bandwagon.
Part of the problem facing the fast-growing DeFi industry is that it lacks top-quality smart contract checks that could prevent cybercriminals from exploiting vulnerabilities on popular protocols.
As a result, cybercriminals have had great success targeting DeFi applications and siphoning billions in crypto funds to their private wallets.
A Look at Recent DeFi Hacks
DeFi gained traction in the summer of 2020, offering revolutionary lending products and huge returns but eliminating any involvement from intermediaries.
Since then, growth in the sector has taken place at lightning speed, with TVL in various protocols now surpassing $90B, per data from DeFiPulse. There are currently over 200 projects utilizing the blockchain and smart contracts to offer users unparalleled financial services.
However, success in this exciting and fast-moving sector has attracted bad actors looking to infiltrate DeFi code and siphon investor funds.
One of the most notable DeFi attacks dubbed the ‘biggest crypto heist‘ ever took place on November 19, 2021. Hackers exploited a loophole in Poly Network and stole $600M in digital assets.
More recently, in December of 2021, malicious actors struck again, targeting the popular DeFi protocol BadgerDAO. In this incident, hackers made off with over $120M in crypto, prompting Chainalysis to investigate the breach along with financial watchdogs from the US and Canada.
Unfortunately, these are not isolated smart contract breaches. As recently reported by CryptoSec, overall losses caused by DeFi exploits have amounted to $1.7 billion, with 75 protocols succumbing to the menacing threat of cybercrime.
Chainsulting Brings Excellent Security Solutions to DeFi
Chainsulting is a professional software development firm based in Germany that provides comprehensive distributed ledger technology (DLT) solutions. Some of their services include blockchain development, smart contract audits, and consulting.
One of the firm’s main goals is to develop tools and provide services to ensure every blockchain project is secure. They are determined to tackle the issue of continuous DeFi exploits that threatens to deter potential investors from putting their hard-earned cash into the blockchain and crypto economy.
So far, the lack of proper smart contract audits has seen multiple DeFi protocols fall victim to devastating hacks that have led to heavy losses. Per a report by blockchain tracing and security firm Ciphertrace, last year was overrun by numerous DeFi attacks that accounted for half of all the hacking incidents in the crypto world.
Chainsulting seeks to root out bugs and other vulnerabilities used by insidious cybercriminals to infiltrate DeFi applications. They have a proven track record of delivering customized security solutions with German technology that empower multiple DeFi and blockchain projects to maintain investor trust and gain a competitive advantage in the sector.
The firm conducts code audits for market-leading blockchains such as Hyperledger, Tezos, Ethereum, Binance Smart Chain, and EOS to mitigate risk and instill trust and transparency into the vibrant crypto community. They also review and secure the smart contracts of DAI, 1Inch, POA Network, Unicrypt, among numerous other top DeFi and crypto projects.
Chainsulting currently secures $100 billion in user funds locked in multiple DeFi protocols. The team behind the leading audit firm relies on their robust technical know-how in the blockchain sector to deliver top-notch smart contract audit solutions tailored to the clients’ evolving business needs.
The blockchain security provider brings the highest security standards to crypto and blockchain platforms, helping to foster growth and transparency within the fast-growing ecosystem.
The Chainsulting Smart Contract Audit Process
Chainsulting boasts over four years of experience in smart contract audit and has delivered reliable security solutions to more than 420 clients.
The company’s audit team composed of Germany’s top blockchain and digital assets experts leverages its domain-specific expertise to conduct smart contract audit tactics that differ from those deployed by other audit firms.
A code review by Chainsulting includes an Automated Vulnerability Test (HoneyBadger, MythX, Mythril, Oyente, Slither, Solhint) and thorough Manual Security Testing (SWC-Registry, Overflow, etc.). The auditing process also integrates a Gas Optimization and Coding Conventions Check, as well as thorough Function and Logic testing.
The blockchain security startup uses a real-time communication tool to connect with the project dev team and provide suggestions on how to remedy bugs and inefficiencies discovered during the audit process. The team also offers assistance to the token developers in applying the necessary fixes.
They then deliver a comprehensive report documenting the audit steps and recommendations. Finally, Chainsulting provides a Certificate of Compliance that reassures all DeFi users that the project is fully vetted and safe.
The leading blockchain auditor has done many notable audits for some of the most prominent crypto projects in existence. The team posts transparent audit results on their social media, GitHub, and Website, confirming that a given project’s code is fully secure and ready to go live.
Conclusion
Over the past few months, a spate of high-profile DeFi hacks has led some to refer to the young sector as the ‘Wild West’ of cryptocurrencies.
This year has seen some of the biggest crypto thefts in history. Increasingly sophisticated heists on dozens of top DeFi protocols highlight the need for project backers to adopt higher security standards to protect the integrity of the entire blockchain industry.
Chainsulting has introduced an intuitive smart contract auditing process that integrates elaborate steps to ensure 100% test coverage on all DeFi projects. This radical approach helps these decentralized protocols conquer the investors’ trust, propelling the nascent crypto space to greater heights.
