Day by day, security is becoming one of the main topics in crypto. Here are some numbers: In the first three months of 2022 alone, hacks resulted in a loss of $1.6 billion.
And although the rate of launching projects is high, the safety of funds is still not going hand in hand. One of the projects in the crypto space working to provide token creators with protection measures is Lossless, in which they have already presented four working products to the industry.
How assets can be protected
What are the most common problems in the field of cryptography that result in hacks? Smart contract vulnerabilities or private key theft.
Usually, it can be noticed that a project lacks audits to assess the quality of its smart contract, or lacks a strong development team for the code to be thoroughly prepared.
Vygandas Masilionis, CEO of Lossless, shared that “because of this, we decided to create Lossless and extend a hand to token holders and project teams who need security solutions but cannot always guarantee them themselves or find solutions. measures in the industry.
So far, Lossless has created and released four live security tools: Lossless Protocol, Vault Protection, Token Minter, and the most recent Token Relaunch Toolkit.
One more product is coming soon, which the team calls Security Oracle. A quick introduction to each and how they can help crypto projects protect their funds.
The lossless protocol
It is the industry’s first framework for active exploit mitigation. The Lossless platform facilitates community-driven manual and automated monitoring of suspicious on-chain activity.
Malicious token transactions are frozen after being reported and are subject to further investigation.
Lossless code detects fraud, freezes and returns stolen funds. Token creators embed the Lossless Protocol in their tokens’ smart contracts to mitigate losses incurred by exploits and hacks.
- urgent freezing — Lossless smart contracts allow hacker detection bots to detect and freeze fraudulent transactions, securing rewards for the bot creator.
- Fraud Analysis — The Decision-Making Body reviews the frozen transactions, validates the fraud and makes the decision to permanently freeze the receiving address.
- Return of stolen funds — The Decision-Making Body promulgates a proposal for the reversal of the transaction, and the code reverts the stolen funds to the address of the owner.
Take a look at this video to learn more:
This is an advanced security tool for project owners. Vault Protection provides an additional layer of protection for treasury wallets and liquidity pools through whitelisting and withdrawal limitation strategies.
There are two types of protection measures that project teams can apply: wallet whitelist and withdrawal limit.
Whitelisting will allow project owners to mark certain addresses as beneficiaries, while any other addresses will be denied any form of interaction by default.
Withdrawal limitation, on the other hand, allows token holders to set transaction limits for their project portfolios. As simple as this solution sounds, it adds second factor protection if someone wants to empty a protected wallet quickly.
The simplest of the four tools, Token Minter, is a lossless wrapped ERC-20 token generator. Project owners can easily create their own Lossless-protected tokens on Ethereum, BNB Chain, Polygon, Avalanche, Fantom, and Harmony, the six EVM-based chains currently supported by the Lossless team.
No development experience is required to use this product, and it’s also free. Here is an explanation of how both Token Minter and Vault Protection work:
Token Relaunch Toolkit
This product is aimed at tokens that are already established in the market but want an easier relaunch process. It will allow them to apply the Lossless protocol to their token smart contract for higher security standards and distribute the newly minted tokens to their rightful owners.
The Token Relaunch Toolkit works not only with LERC-20, also known as Lossless Protected Tokens, but can also relaunch any token on the market. All the project team has to do is come up with [email protected] in order to use the product.
Here is a quick step-by-step guide on how the product works:
Why is security a necessity in crypto?
In 2020, hacks caused the cryptocurrency industry to lose $3.8 billion. In 2021, that number grew to $10 billion. And this year, as already established, the first quarter resulted in a loss of $1.6 billion.
It is obvious that while the number of attacks and the damage they cause is constantly increasing, security is still not in the way that it should and could be so that crypto projects have the means to protect their assets and those of their users.
As Lossless CEO Vygandas says: “Our mission is to provide crypto protection tools for web3 projects. Hacks and exploits are one of the biggest problems in the industry, keeping it from a faster pace of adoption. Our team’s goal is to be one of the industry leaders in security for the foreseeable future, and that’s where we’re going as we continue to build even in market environments like today.”
Stay up to date with Lossless and its product developments through the channels below.
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