As faith in audits falter, the DeFi community ponders security alternatives
Can new code review models solve DeFi's audit problem? As the attacks launched against popular decentralized finance (DeFi) protocols grow ever-more complex, the efficacy of audits from major security companies have in turn come under scrutiny — and some members of the DeFi community have already begun building homegrown alternatives.“I think that now, after all the hacks we’ve had, we basically understand that if you have two audits, three audits, it doesn’t mean you’re safe,” said the co-founder of DeFi Italy Emiliano Bonassi in an interview with Cointelegraph. “This does not mean that....
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The fund will pay for the one thing devs can't do internally: security audits.
The demand for blockchain security experts comes amid a rise in crypto hackings in 2022. The rise of crypto hacks over 2022 has skyrocketed demand for blockchain security experts, with some auditors making upwards of $430,000 per year.Speaking with Cointelegraph, blockchain recruitment firm CryptoRecruit founder Neil Dundon said that while security audit services have long been in demand, the rise of decentralized-finance (DeFi) protocols has opened up opportunities for auditors to review potentially vulnerable smart contracts:“There’s always been a demand for security auditors [...] But....
OKEx has frozen withdrawals, audit firms are experiencing a backlog of DeFi projects and the Trump administration is examining DLT for national defense.
The crypto space continues to build frameworks to supplement DeFi's rising star. Keeping pace with the rapidly developing decentralized finance niche within the crypto industry, major crypto exchange Binance has called on blockchain auditing company CertiK to beef up its platform's security. "The rapid innovation and experimentation of DeFi is what makes it so great, but speed should not compromise security," CertiK's chief operating officer, Daryl Hok, told Cointelegraph. "We're providing a way for early adopters to continue to reap the benefits without having to be the guinea pigs....
Four hacks in a week are too much, even for DeFi. If people actually used insurance against hacks, this week would definitely have bankrupted a great many insurers. A total of four flash loan-enabled exploits were registered in the span of one week (one of them actually happened the week before, but nobody noticed until later).We have, in order, Cheese Bank with a $3.3-million theft, Akropolis with its $2-million loss, Value DeFi with a whopping $6-million exploit, and finally Origin Protocol’s loss of $7 million.In total the hackers stole $18.3 million, which admittedly is not that much —....