Friends 😘😘
How to correctly analyze projects, what types of scams there are and how to avoid them.👇👇
Part 1 - How to conduct protocol security analysis.
Protocols that have liquidity in them are often the target of hacker attacks. At this point, most protocols have been hacked at least once and still return losses.
We can only influence the choice of the protocol itself. Let's figure out how to do this.
We recommend using DefiLlama to analyze the protocol.👇
https://defillama.com/
How to analyze a protocol:
🟢Estimation TVL. 👇
https://defillama.com/?tvl=true
The larger it is, the higher the community’s trust in the protocol. It is also worth looking to see if there has been a sharp outflow of liquidity.
🟢Evaluation of protocol backers and size of investment. Reputable funds are more likely to prevent a hack or return funds if one occurs.
🟢Pay attention to Forks👇
https://defillama.com/forks
- using code from another project or protocol. It is necessary that the protocol inherits code only from secure solutions that have not been hacked.
🟢Does the project maintain Github and how often. This tells us about the activity of developers and the regularity of updates. An important point, because vulnerable code is much easier to crack.
🟢Twitter rating. The higher the speed, the better. The best way to analyze Twitter is with Tweetscout.👇
https://app.tweetscout.io/
💡Even if the protocol meets the above criteria, it still does not guarantee 100% security, so remember to diversify.