The rise of blockchain technology has opened the curtain on new possibilities, including decentralized financial applications (DeFi) governed by smart contracts. These protocols leverage decentralized networks and cutting edge technologies to deliver innovative financial services to the masses.
By eliminating middlemen such as banks, DeFi projects offer lucrative earning opportunities and enable everyone to participate in traditional financial activities. For example, these platforms offer decentralized access to lending / borrowing that benefits millions of people without a bank account around the world.
Additionally, investors looking for high returns find the DeFi sector very attractive as it offers high yield savings that traditional financial institutions cannot match.
Unfortunately, the whopping Total Volume Locked (TVL) in DeFi has raised several security concerns. Users have lost billions of dollars to cyber criminals targeting multiple platforms, scaring potential investors looking to hop on the DeFi bandwagon.
Part of the problem facing the rapidly growing DeFi industry is the lack of high quality smart contract reviews that could prevent cybercriminals from exploiting vulnerabilities in popular protocols.
As a result, cyber criminals have had great success targeting DeFi applications and scooping billions in cryptocurrency into their personal wallets.
A look at the latest DeFi hacks
DeFi gained traction in the summer of 2020, offering revolutionary credit products and huge returns without any intermediary involvement.
Since then, the sector has grown at lightning speed, with TVL now topping $ 90 billion per data from DeFiPulse in various protocols. There are currently over 200 projects using blockchain and smart contracts to provide unparalleled financial services to users.
However, success in this exciting and fast-paced sector has attracted bad actors trying to infiltrate the DeFi code and siphon off investor money.
One of the most notable DeFi attacks, dubbed the “Greatest Crypto Raid” of all time, took place on November 19, 2021. Hackers exploited a loophole in the Poly Network and stole $ 600 million worth of digital assets.
Most recently, in December 2021, malicious actors struck again and targeted the popular DeFi protocol BadgerDAO. In this incident, hackers with over $ 120 million in cryptocurrencies made off, leading Chainalysis to investigate the breach along with financial watchdogs from the US and Canada.
Unfortunately, these aren’t isolated smart contract violations. As recently reported by CryptoSec, the total losses caused by DeFi exploits were $ 1.7 billion, with 75 logs succumbing to the menacing cybercrime threat.
Chainsulting brings excellent security solutions for DeFi
Chainsulting is a professional software development company based in Germany that offers comprehensive solutions for Distributed Ledger Technology (DLT). Some of their services include blockchain development, smart contract audits and consulting.
One of the company’s main goals is to develop tools and provide services to ensure that every blockchain project is secure. They are determined to address the problem of ongoing DeFi exploits that could deter potential investors from investing their hard-earned money in the blockchain and crypto economies.
So far, due to the lack of suitable smart contract audits, several DeFi protocols have fallen victim to devastating hacks that have resulted in high losses. According to a report by the blockchain tracing and security company Ciphertrace, the last year was overwhelmed by numerous DeFi attacks, which accounted for half of all hacking incidents in the crypto world.
Chainsulting seeks to eradicate bugs and other vulnerabilities used by insidious cyber criminals to infiltrate DeFi applications. They have a proven track record of delivering bespoke security solutions using German technology that enables multiple DeFi and Blockchain projects to maintain investor confidence and gain a competitive advantage in the industry.
The company conducts code audits for market-leading blockchains such as Hyperledger, Tezos, Ethereum, Binance Smart Chain and EOS to mitigate risk and create trust and transparency in the dynamic crypto community. They also check and secure the smart contracts of DAI, 1Inch, POA Network, Unicrypt and numerous other top DeFi and crypto projects.
Chainsulting is currently securing $ 100 billion in user funds locked in multiple DeFi protocols. The team behind the leading accounting firm relies on its solid technical expertise in the blockchain sector to provide world-class intelligent contract review solutions tailored to clients’ evolving business needs.
The blockchain security provider offers the highest security standards for crypto and blockchain platforms, helping to promote growth and transparency within the rapidly growing ecosystem.
The chainsulting smart contract audit process
Chainsulting has more than four years of experience in smart contract review and has delivered reliable security solutions to more than 420 customers.
The company’s audit team, made up of Germany’s leading blockchain and digital asset experts, uses its domain-specific expertise to implement intelligent contract review tactics that are different from other audit firms.
A code review by chainsulting includes an automated vulnerability test (HoneyBadger, MythX, Mythril, Oyente, Slither, Solhint) and thorough manual security tests (SWC registry, overflow, etc.). The auditing process also includes a review of gas optimization and coding conventions, as well as thorough functional and logic tests.
The blockchain security startup uses a real-time communication tool to connect with the project development team and make suggestions on how to fix bugs and inefficiencies discovered during the audit process. The team also provides assistance to the token developers in applying the necessary fixes.
They then provide a comprehensive report that documents the review steps and recommendations. Finally, Chainsulting offers a Certificate of Conformity which assures all DeFi users that the project is fully verified and safe.
The leading blockchain auditor has performed many notable audits for some of the most famous crypto projects. The team publishes transparent audit results on its social media, GitHub, and website to confirm that a given project’s code is completely safe and ready to go live.
In the past few months, a spate of high-profile DeFi hacks has led some to refer to the fledgling sector as the “Wild West” of cryptocurrencies.
This year saw some of the biggest crypto thefts in history. Increasingly sophisticated heists of dozens of top DeFi protocols underscore the need for project supporters to implement higher security standards to protect the integrity of the entire blockchain industry.
Chainsulting has introduced an intuitive smart contract auditing process that integrates complex steps to ensure 100% test coverage for all DeFi projects. This radical approach helps these decentralized protocols gain investor confidence and drive the emerging crypto space to greater heights.