The blockchain world is a dark jungle where wealth gathers and circulates, and is full of believers, haters, instigators, back-stabbers and money-grabbers. Decentralized finance (DeFi) has become one of the most prominent applications of blockchain technology. The large amount of funds invested in DeFi projects has also made them a typical attack target.
For DeFi projects, safety is undoubtedly the first, followed by product experience and technological innovation, which determines the length of time to survive in the market. However, to chase the DeFi hype, batches of projects have emerged, many of which are just copycats, pursuing short-term benefits and ultimately causing loss of user funds when security issues are exposed.
The truth is, it is not easy to balance security and development. So, how can DeFi security be enhanced?
HurricaneSwap provides its own solution: safety first, multiple safety agencies work together to guarantee security.
The DeFi Paradox: Risks and Opportunities
DeFi has experienced a glorious period in the past year. According to public data, the overall total value locked (TVL) in DeFi protocols has reached 269.69 billion USD, while it’s only about 20 billion in the same period last year. With the development of NFT, GameFi and other sectors, the scale of users is also growing significantly.
While DeFi has proven itself, many investors still worry about exposing their money to risk. Media headlines also highlight the frequency of hacks and rug pulls is increasing.
Even though DeFi has proven itself, many investors still have concerns about exposing their money to risk. Media headlines also document the increasing frequency of hacks and rug pulls.
Data indicates that 60 DeFi security incidents occurred in 2020, resulting in more than $250 million in losses. Hackers targeted several DeFi projects, including bZx, Balancer, Harvest, and many others.
As more and more money is invested in DeFi, so is the amount of money involved in security incidents related to it. In 2o21, more than 80 on-chain security incidents occurred, and more than $1.8 billion was stolen.
According to the statistics by Rekt, the cross-chain sector accounts for the majority of security incidents. Furthermore, only 19 of the 57 protocols involving security accidents have been audited, and they have generally been reviewed by a single security audit firm.
“Along with ensuring the confidentiality, availability & integrity of the code at the technical level and testing it before launching, the project should also perform an excellent job in security auditing before everything goes live.” said the SlowMist team after Poly Network was attacked.
Unlike others, HuriicaneSwap V2 with cross-chain features has been audited by three leading audit agencies. Why does HurricaneSwap attach so much importance to security audits?
HurricaneSwap: Three Audits and No Loss
It is vital that a platform’s smart contracts are publicly available and audited by respected industry professionals. Audited smart contracts demonstrate that those platform creators are committed to the investors’ best interests.
HurricaneSwap V2 has been audited by SlowMist, PeckShield and HashEx.
SlowMist is a blockchain-based ecological security company. The company was founded in January 2018. Based on more than ten years of front-line network security attack-defense experience, the company has served various notable global projects using its “the security solution that integrated the threat discovery and threat defense while tailored to local conditions.”
PeckShield was founded by Dr.Jiang Xuxian in 2018, who was previously Chief Scientist at Qihoo 360. The team consists of seasoned security professionals and senior researchers from leading security groups at Qihoo 360, Microsoft, Intel, Juniper, and Alibaba. The PeckShield team has attracted wide attention to discover Ethereum smart contract security issues, such as the BatchOverflow loophole. It is on the Etherscan.io recommended vendors list for smart contract security audits and is ranked 3rd internationally in the Ethereum Bounty Program. PeckShield has also provided audit services to Avalanche.
HashEx is one of the most influential tech advisories in the industry. Since 2017, more than 500 smart contracts have been audited, securing $2 billion in funds. The leading DEX on Avalanche, TradeJoe, was also one of their clients.
Aside from HurricaneSwap, there are still many other projects in the cross-chain DEX sector, such as O3 Swap, AnySwap, and 1Sol Protocol. In terms of security auditing, O3 Swap has been audited by Certik and SlowMist, and Trail of Bits audited AnySwap. Most cross-chain protocols have only been audited once, and others, such as the 1Sol Protocol, have not even been audited.
Some people may believe that audited by different agencies are necessary as the results might be similar. However, different security agencies focus on various aspects of auditing. In the case of HurricaneSwap, it provides a creative solution to cross-chain transactions, creating an extensive collection of original codes. Multiple agencies can uncover and fix more hidden risks through static and dynamic audits on different focuses.
DeFi, the essential infrastructure in the decentralized world, offers decentralization, permissionlessness, and scalability. However, all these advantages may turn into weaknesses and become infinitely magnified if security issues arise. The security of the DeFi projects has always been the sword hanging over them, and the emphasis on safety is the most substantial support for the project’s development and innovation.
HurricaneSwap is the 1st cross-chain liquidity DEX based on Avalanche. With the innovative LP-Bridge mechanism (Roke Protocol), users can trade popular assets of other chains without leaving Avalanche. And taking the advantages of Avalanche, HurricaneSwap provides users with a high-performance, low slippage, low-cost and seamless cross-chain trading experience.