Multiple Wall Street industrial trading companies have recently made plans to boost their cryptocurrency trading activities. The financial startups may soon open new business ventures to acquire a lump sum of crypto assets to trade. The most prominent players in the United States equity market have shifted their focus to digital assets. Some of these companies include Jump Trading, Jane Street and GTS. Wall Street Eyes Cryptocurrency Trading Several renowned Wall Street companies command trading respect on a global sphere.…
SolidProof is a security audits firm that specializes in inspecting smart contracts to enhance user trust in DeFi projects.
The German-based audit firm utilizes various time-proven tests to uncover vulnerabilities in blockchains. The experienced auditors then give a detailed report to project dev teams, enabling them to fix bugs and other vulnerabilities in their smart contract code.
SolidProof delivers custom, thorough, and transparent audit reports that categorize any identified bugs or vulnerabilities in terms of seriousness (Critical, Medium, or Low). The blockchain auditor then issues comprehensive recommendations that the developers can implement to improve their project code, assuring the community that their funds are secure.
After every successful audit, the project gets a unique certificate that serves as proof of audit from SolidProof.
A Look into the SolidProof Audit Process
A smart contract audit improves security in any blockchain project’s code. SolidProof’s specialized team of auditors engages in several practices to sniff out bugs that hackers can exploit. Besides analyzing critical vulnerabilities prone to manipulation, the team also examines the code to point out areas that can be more efficient.
The process begins with a project requesting a complimentary audit by sending a non-binding request and their code to the SolidProof team. Next, the team analyzes the protocol and reviews the whitepaper to understand what the smart contract is intended to do. After the initial assessment, SolidProof sends the client a personalized quote, which varies according to the complexity of the smart contract. Following the initial communication, the review of the source code begins.
The SolidProof auditors take great effort to review and understand various aspects of the code, including which libraries and design the core dev team adopted. In addition, the audit team often engages the project’s developers to understand better how the code is intended to function.
The code review entails automated and manual testing. Standard automatic tests come first and resolve some of the early issues with the code early on. Automated analysis can quickly uncover known vulnerabilities in smart contracts, including denial of service (DOS) attacks, timestamp dependencies, variable shadowing, and gas limit issues.
The manual analysis then occurs, where the team relies on their skill, experience, and understanding of the project to uncover vulnerabilities in the smart contract. This stage of the audit process is the most critical because it does a lot more than point out vulnerabilities in the code; a manual reviewer can do much more such as check for desired functionality and review various permissions.
Next, the code reviewers recommend fixes to all bugs and other issues raised and work with the project developers to ensure all vulnerabilities are closed. The final step of the audit protocol entails another review of the code to ensure it is technically sound and completely secure.
Once the audit process is completed, SolidProof delivers a detailed audit report, a certificate, and additional marketing resources to the client.
Why DeFi Projects Need a KYC/Audit Solutions
The DeFi space has seen massive adoption due to its radical approach to lending/borrowing and the many opportunities it gives investors to earn passive income. Retail investment has been pouring into the sector, with institutional interest also mounting amid rising inflation and a dip in returns from fixed-income assets.
The total value locked (TVL) in various protocols grew from around $700M at the start of 2020 to currently hit $64 billion, per data from DeFi pulse. However, despite this remarkable growth, the DeFi space has become associated with hacks and other vulnerabilities that often lead to millions of user funds lost. For example, over $470 million was lost to security breaches on multiple DeFi protocols in the past year alone.
The main reason why these protocols are so susceptible to criminal activity is that they are open-source, meaning that anyone can study and identify loopholes in the code. Moreover, many projects tend to launch in a rush, with dev teams often turning a blind eye to errors in their smart contract.
The result of mistakes from developers allows attackers to trick DeFi protocols via tactics such as price oracle manipulation or logic errors that open up the code to external exploits.
Some of the most famous DeFi hacks of the past year include the flash loan attack on Yearn Finance (YFI) that siphoned $11M from the protocol. Decentralized finance protocol bZx suffered three similar hacks in 2020 that drained $8M, a whopping 30% of the project’s TVL.
Still, the appetite for DeFi lending hasn’t slowed down. Many investors seeking higher returns opt to invest in the capital-hungry digital asset markets instead of the underperforming conventional markets. This unrelenting demand for DeFi lending and borrowing has forced the industry to brush up on its security standards.
Substantial improvements in DeFi security have come from the practice of projects introducing Know Your Customer (KYC) standards and default code audits before mainnet launch. Rather than looking at smart contract audit and KYC standards as an unnecessary burden, developers now view these measures as essential to instill trust in their projects.
Bring Trust to Your Project with SolidProof
A look at recent DeFi protocol hacks and the vulnerabilities they have exposed makes it clear code audits are essential for any serious project.
SolidProof has emerged as a market leader in the blockchain audit world. The German-based company specializes in protecting DeFi protocols from illegal activity to give project backers and users a good sense of security.
The leading blockchain auditor is trusted by multiple projects to integrate KYC solutions that safeguard their financial resources against terrorist financing, fraud, money laundering, and other criminal behavior.
So far, numerous DeFi protocols have subjected their smart contract to the SolidProof KYC and audit process. The latest projects to be reviewed by SolidProof include Chain Rider, DogeCola, and Eversify.
The audit team is currently investigating incidents on several projects such as NTFPorn, and recently resolved an issue on Ken Inu.
Smart contracts are powering hundreds of decentralized finance projects globally. Therefore, their security is paramount to protecting the billions in user funds currently locked up on various protocols.
Moreover, smart contracts resistant to manipulation help by eradicating devastating attacks that erode trust in the sector.
SolidProof has been on the frontline of securing blockchain projects in DeFi for a while now. The blockchain auditor has also formed a strategic partnership with Unicrypt to help multiple DeFi projects launch successfully and realize their full potential.
Disclosure: This is a sponsored post. Readers are encouraged to conduct further research before taking any action. Furthermore, Crypto Adventure does not endorse any crypto projects cryptocurrencies listed, mentioned, or linked to on our site. Learn More