No matter what market environment the DeFi project is in, it is very important to do a good job of security audit. So, what is the main content of the security audit of DeFi projects, and what is the role of the audit report? At the same time, after the DeFi project has passed a complete audit, can it be guaranteed to be foolproof? In addition to security audits, what risks exist in DeFi projects? Hope this article can provide some enlightenment.
In the past few months, DeFi (decentralized finance) projects have emerged one after another, creating waves of enthusiasm and becoming the focus of Internet financial technology.
From the perspective of the DeFi ecosystem, liquidity mining, decentralized exchanges, credit lending and other protocol (application) products have received strong market responses, and their roller coaster-like value waves have attracted countless investors to enter the market.
As a pledge asset, a large amount of ETH is locked in various DeFi protocol products. The well-known data analysis platform DeFi Pulse shows that the total value of assets locked in DeFi has exceeded 9 billion US dollars, which is close to the 10 billion mark.
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The DeFi arena, the situation is treacherous
However, behind the hot investment, various DeFi security incidents occur frequently. With the crazy attacks of hackers on the loopholes in various parts of the contract, multiple DeFi project platforms have suffered huge losses.
Generally speaking, among the security risks of DeFi projects, the most common security issues are caused by code logic errors. In August, the DeFi project Yam Finance (YAM) tweeted that its Rebase function had a loophole. This led to an imbalance in the elastic supply of tokens, a huge amount of YAM was issued, and normal governance could not be carried out. In addition, the DeFi project YFValue (YFV) also issued a statement saying that there is a loophole in its YFV pledge pool, and the YFV timer may be maliciously reset.
In fact, similar to code-level technical specification issues, such as being able to accept third-party security audits before the project goes live, should be able to kill the problem in the bud. Perhaps it is precisely because of this consideration that many DeFi projects have gradually begun to realize the importance of security audits, and choose highly qualified security companies to perform them.
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A sharp tool for risk avoidance: security audit
From the perspective of investors, if you want to choose to invest in DeFi projects, if the candidate project itself has the audited label, its trustworthiness will naturally increase a lot. After all, top DeFi projects like Uniswap are not immune to the fate of hackers using contract loopholes to steal assets. Investors rely solely on heat to make investment judgments, and the bubbles do not know how deep they are, which can easily lead to investment failure. Some investors even said that the security audit or not is the most important reference indicator for him to assess the credibility and risk of a DeFi project.
It is true that to assess whether a DeFi project is risky, on the whole, whether it has received a security audit is an important watershed in judging the security of a DeFi project. This is because smart contracts are still in the early application stage of technology, and technical loopholes in various aspects and stages are unavoidable. Therefore, as a pre-risk avoidance measure, passing an overall security audit is a rigid indicator for evaluating project security credibility.
As the worlds leading blockchain security company, Chengdu Lianan can quickly and accurately standardize contract codes based on the fully self-developed Beosin-VaaS smart contract automatic formal verification system and based on a large number of third-party contract security audit experience Global checks are carried out to eliminate security holes such as overflow and reentrancy. Through formal verification, the risk of hacker attacks is greatly reduced, and at the same time, the problem of rule-breaking due to code problems can be basically eliminated.
In the audit report, the business logic and functional description of the inspected DeFi project will be disclosed based on the actual situation of the inspection. Through the audit report, investors can compare and check whether the project party has false propaganda in terms of business and functions. At the same time, the project overview, technical structure and other aspects can also be fully grasped and analyzed, and a description of project authority can be formed.
In addition, investors can also examine whether the project party has the high-risk operation authority of one-click transfer of contract assets based on the audit report, and whether there is a possibility of setting key parameters that deviate from the idea of decentralization, so as to maximize Avoid the risk of artificially manipulating investors funds to a certain extent.
In fact, security audit is not boundless magic power
In general, loopholes such as integer overflow lead to passive additional issuance; code fusion of different ERC standards produces combined loopholes; unreasonable configuration of administrator authority Admin Key leads to obvious traces of centralized manipulation; platform migration and new liquidity mining pools induce Problems such as token configuration errors can be avoided to the greatest extent with security audits and service support.
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Its difficult to keep the original intention, but be cautious
Technical beliefs and value consensus have made DeFi projects unprecedentedly popular. Facing the fierce capital flow, whether it is a skilled programmer or an ambitious project entrepreneur, it is a helpless reality that it is difficult to keep the original intention.
At the same time, the security audit of projects such as DeFi contracts, even if they are dedicated and conscientious, cannot predict the results and gain insight into the changes in peoples hearts. Perhaps this itself is the truth that technology can never surpass.
From ancient times to the present, the game around assets has never stopped. As long as someone participates, it will never stop.
Chengdu Lianan solemnly reminds that entrepreneurs of DeFi projects would rather be backward in technology than corrupt in the hearts of the people, and security audits are absolutely unavoidable. At the same time, as a participating investor, please be sure to choose projects carefully and always be rational. Behind the high return rate of digital assets is always unforeseen high risk.
In a second thought, cyber hackers may have a black and white identity, but the boundary between black and white is not limited to dawn, and security risks are not limited to audits.
