Explore ways to improve the security of your DEFI project

Besides the introduction of new assets such as cryptocurrencies, the advent of blockchain technology has brought about changes in traditional financial spending, personal data, chains, cross-border money transfers, and other expenses. Blocks can be found on each level. Decentralized Finance (DEFI) in blockchain, the shadow of the application chain, is certainly one of the most popular applications today and deals with blockchain financial services.

Unlike existing financial institutions, consumers do not invest in third party financial institutions and the risk can be reduced by gaining the approval and trust of many smart contracts. It is a complete open source ecosystem that provides financial services such as loans, business, property management, and payments.

As I said before, everything has two sides, at the same time according to DEFI preferences, hackers can also take care of this "scent" if you want to create a DEFI project? ? Are you protecting yourself?

You need to know more about DeFi.

Recently, crypto-analytics company Chainalysis announced its global adoption of DeFi, with the United States, Vietnam, Thailand, China, and the United Kingdom in the top 5.

The index ranks 154 countries / regions and consists of three indicators: the value of the chain's cryptocurrency received through the DeFi platform, the purchasing power parity per capita, the total retail price received through the DeFi platform and the client for the DeFi platform. DeFi platform.

Chainalysis points out that many of the top countries are countries that currently have or have experienced high cryptocurrency rates, most middle- and high-income countries, or countries that have developed high cryptocurrency rates, in especially strong markets and markets. In addition to the five countries above, the countries of Western Europe hold the highest levels.

In fact, DeFi's initial popularity dates back to “yield farming,” which gained popularity late last year. Also called "liquid mining", it means:

As long as users interact with the DeFi platform or offer commercial products (such as commercial platforms, assets, loans and loans), they can receive tokens issued by products based on the platform. drunk.

Tracking the optimized performance of DeFi platform can attract a lot of capital and income in a short time and quickly generate business interest. Soon after, DeFi launched DeFi Summer with a single song, and DeFi's business has continued to this day.

The total value of DeFi contracts has grown from $ 10 billion in September last year to over $ 80 billion in August this year, according to data from cryptocurrency analysis firm DeFi Pulse.

Of course, the rise of DeFi still depends on certain gains. Blockchain and DeFi technology make the system reliable, profitable and transparent, allowing non-bank users to enter the market and open up new opportunities for employee businesses.

As DeFi adoption rates increase and future expectations are broad, today's security issues are the most difficult to contend with with DeFi.

Why would hackers want to attack DeFi projects?

Financial Management Standards (DeFi) hacker attacks now account for nearly 76% of all major hacker attacks globally, according to a report by the security company. Year 2021.

The crooks have focused on lucrative contracts from fraudulent campaigns and report that DeFi hackers lost a total of $ 361 million last year, up from $ 129 million per year.

Many DeFi programs can be stolen due to malfunctions in developer policies, and the report further states that other cybercriminals can steal DeFi protocol by loaning and controlling it.

Popsicle Finance's Sorbetto Fragola share, a cross-functional commodity, was valued at nearly $ 20.7 million.

The poly network, a cross-chain process, was attacked and nearly $ 600 million in funds from three chains: Ethereum, Binance Chain, and Polygon were stolen.

Mortgage lenders took out $ 18 million in mortgages and lost $ 18 million.

The main reason for frequent DeFi attacks is the accumulation of large assets. Faced with a massive test, the hackers will not find a way to attack. For example, a cross-chain operation is not only the smart chain contract, but also the exit of the chain, so even if it goes wrong, hackers will use it.

From a hacker point of view, the impact of the blockchain ecosystem is an ideal medium.

Since these systems are anonymous and temporarily unregulated commercially, cybercriminals can make money by attacking dangerous DeFi projects or using carpet scams.

How do DeFi projects prevent hacker attacks?

After identifying dozens of attacks, we find that the longest hacks are lightning strikes, contract attacks, and re-entries.

Most of the risks involved in planning smart contracts can be avoided by optimizing the rules of the chain. However, the cross-planes are different, the cross-sections have certain characteristics, and security decisions cannot be limited to the level of smart contracts.

Creative DeFi products can present a great risk.

Users should pay close attention to analysis when participating in blockchain related activities, select the activities that have been fully assessed by the professional watch company, and have a detailed understanding of all operations. At the same time, after participating in the project, you should carefully monitor the new progress of the project, in the event of a security situation, the funds should be withdrawn in a timely manner to avoid further losses. If necessary, you can. ask for help. company security.

DeFi offers plenty of opportunities, especially for investors and developers who want to streamline the cryptocurrency market while managing cash flow in different formats.

Security is still a major challenge for the DeFi ecosystem, but with advancements in technology and the right measures, the BitAn Security Audit Center believes the DeFi ecosystem will get better and better.