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Get Due diligence in DeFi report by QuillAudits

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 .

Coding Risk

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.

Centralization Risk

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.

Financial Risk

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.

Regulatory Risk

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.

Whale Hunt- SBF and Blue Kirby is a dive into the latest exit scam in the DeFi space for on-chain transactions and activities.

The decision by Chef Nomi to cash out of the project also allegedly led many to believe SushiSwap was some kind of an ’exit scam’, where a protocol is built for the sole purpose of building up a token price before the scammer sells all of the tokens, abandons the project, and makes off with all of the cash.

By requesting unrestricted transfer permission and later emptying the wallet, the UniCats platform scammed a user out of $140K worth of UNI.

In an ongoing phishing campaign targeting Ripple owners, more than 9.9M XRP were stolen using fake airdrops distributed in XRP payment memos and regular phishing emails.

QuillAudits offers you a report based on the safety level graph for the lines of code belonging to the smart contracts of the DeFi projects you are looking to invest in.

1. Fill in the details of the project.

2. Fill in Your Contact details.

3. Our representatives will contact you with the further process.

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....

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....

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....

What is DeFi Diligence?

DeFi Due Diligence is the methodical examination to analyse risks associated with DeFi protocols. It is a systematic way to identify possibilities in which the system is prone to threats. It helps users and investors identify what parts of a DeFi project are exposed to risks and could potentially threaten their funds.

What issues can be identified during DeFi Diligence?

While carrying out DeFi diligence, we look for risks associated with the DeFi projects, such as Coding risks, through which attackers can steal funds, Centralization risks, like a malicious party can take over the singular source of data and manipulate the market, Financial risks, related to holdings locked in DeFi protocols, and Regulatory risks.

Why DeFi Diligence Important?

DeFi diligence is one of the crucial steps in examining DeFi protocols before investing in them. Financial transactions involve risks of losing them to malicious actors; therefore, users and investors should follow the best diligence practices to mitigate them.