SolidProof, a blockchain auditor, has established a strategic partnership with Unicrypt to ensure DeFi projects are launched successfully and realize their full capabilities. The blockchain auditor launched in 2021 and has been at the forefront of securing blockchain projects in DeFi.
The Security Audit Firm is a German-based project specializing in smart contracts auditing to find vulnerabilities in a blockchain project using manual and automation testing, which helps boost investors' trust.
Decentralized financial services have gained the trust of several investors globally as data records a significant rise in the total value of locked assets. DeFi can host various platforms offering products ranging from lending, exchanging to insurance by excluding the control of governments and other third parties.
Protecting Investors and Users
DeFi market has faced numerous challenges mostly, fraud-related cases. The industry introduced new solutions to safeguard investors and users, like Know Your Customers (KYC) and auditing companies to keep things in the right lane.
KYC and Audits bolster trust in DeFi by proving that a project is genuine; thus, that makes investors have deep confidence in the DeFi space.
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Several platforms provide auditing and KYC procedures independently, but SolidProof utilizes both features to build trusted blockchain-based DeFi projects. The network determines a user's identity and checks if their financial sources are legitimate KYC services. Data is guarded against unauthorized access as required by the DSGVO privacy regulation
Interested platforms begin by requesting free audits and sending their codes to the SolidProof network to realize a successful audit. The customer will then get a personalized quote after close evaluation.
An auditing report is then prepared to highlight any potential vulnerabilities in the code through manual and automatic tests. If the code has mistakes, the SolidProof team works together with the project's team to resolve the vulnerabilities. SolidProof issues auditing certificates after the process is complete.
Last year, some of the most famous DeFi attacks included the flash loan attack on Yearn Finance (YFI) that drained $11M from the protocol. Decentralized finance protocol bZx went through three hacks in 2020 that saw it lose $8M, a whopping 30% of the project's TVL.
Despite all these, DeFi lending is still gaining popularity. Many investors seeking significant profits opt to invest in the capital-hungry digital asset markets instead of the underachieving conventional markets. Persistent demand for DeFi lending and borrowing has made the industry improve its security standards.