Get Due diligence in DeFi report by QuillAudits
Are you looking to invest in new and hot DeFi projects?
QuillAudits acknowledges the significant threats involved in smart contracts, which can lead to many critical possibilities.
Identify ways in which the system is susceptible to be gamed or abused, what parts are exposed to centralization risks like point of interaction with oracles, and what governance mechanisms are in place that could be a potential threat to the investor funds .
The complex nature of DeFi protocols is not surprising that there are errors in the code that can provide malicious parties with an attack vector through which hackers can steal funds. One such attack was on DeFi protocol SushiSwap which was exploited for between $10,000 and $15,000.
The risk posed as it is trivial for a malicious party to take control of the singular source of data and manipulate the market to their profit. Oracles are a possible source of systemic risk, and their data feeding role is prone to manipulation.
DeFi protocols are based on public blockchains. These blockchains typically have a native digital asset. The price-performance of the asset of the supporting blockchain is likely to affect the value of the holdings locked in a DeFi protocol. While this may lead to profit, it is also possible that there are losses.
Unfortunately, due to a combination of factors, such as a lack of understanding and the complexities in technology, some regulators and jurisdictions are not in favour of the DeFi space. Fortunately, this issue is likely to be alleviated with time.
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DeFi Due Diligence ?
Compounder Finance DeFi project allegedly pulls the rug from under investors, $11 million stolen
One investor is offering a $100,000 bounty leading to the unmasking of the thief, or thieves, involved. An exit scam allegedly performed by Compounder Finance DeFi developers has left investors $11 million out of pocket....Read More
In one day, a total of $1.2 million worth of Ethereum was stolen in three DeFi “rug pulls”
The past few days have marked a renaissance in altcoin trading: previously-unknown projects on Uniswap, the leading Ethereum decentralized exchange, have been rallying by thousands of percent. Even some larger names have gained hundreds of percent, somehow benefiting as Bitcoin and Ethereum have begun to falter....Read More
PopcornSwap Liquidity Siphon Rugpull
A newly released project, PopcornSwap, has performed a liquidity siphon scam. This was nearly an instant rug-pull upon launch, stealing custody of over 2,000,000 USD in users’ tokens....Read More