$4.2b in crypto was stolen from Defi last year. How can you protect yourself and not lose money in #Defi ?
Many dApps rush to market without being audited, and in 99% of cases there is a vulnerability in the code and other flaws. This results in loss of customer assets.
Regardless of the professionalism of developers, the risks of bugs and holes in the code are always present. Therefore, smart contracts will be constantly under attack and the risk in Defi will be present all the time.
First of all, you need to check the Defi service by basic criteria 👇
- Project team. If the names have a bad reputation or are involved in fraudulent transactions, it is not worth taking a risk.
- Period of presence in the market. Projects that have been in existence for less than a year have a high-risk status.
- If you have an audit report, it is also worth finding out about the company that did the report. If the audit is done by two different companies, this will minimize the risks as much as possible.
But even these precautions do not guarantee the safety of your money. A smart contract can still have an error and a loophole for attackers.
This is why the insurance sector has huge potential in #web3. There are very few projects that can provide quality coverage for assets. One such project is Anulet Protocol.
Amulet Protocol provides simple and reliable coverage for everyone in web3. Built for Rust ecosystems, starting with the #Solana blockchain. The Protocol offers coverage products that provide users with a reliable way to hedge a variety of risks.
Coverages have already been implemented to hedge the risks associated with smart contract vulnerabilities, as well as depeg cover for $USDC and $USDT stablecoins.
Smart contract vulnerability coverage extends to:
— malfunction or programming flaw; or
— unauthorized, malicious, criminal attacks, hacks or exploits of any malfunction or programming flaw
Amulet DePeg Cover — protects the users from volatility of tied assets. In the event of asset depeg, the cover users receive compensation.
Amulet Protocol studied user experience and past underwriting models and created a new approach to underwriting risk in Web3.