Hello everyone, the Lumi team is here with you again! We received good feedback from you on our articles about internet security. We decided that this topic is relevant to you, so let’s talk about actual things again.
This might seem like it’s coming from left field, but we all know about Maslow’s hierarchy of needs (if you have not heard of it, then google it and immediately remember that you have definitely seen it somewhere). The primary human need is physiological (organic), which you yourself can take care of. But the second need – the need for security – we can help you here. When choosing one cryptocurrency or another, you probably have questions: Is this a scam? What are its advantages? And hundreds of other questions that any sane person who does not want to “get into a hole” would ask themselves.
LUMI Wallet was one of the first real products on the market to provide a high-quality app with an easy and smooth interface combined with high standards of security and functionality. Our mission has always been to develop a transparent non-custodial crypto wallet software that allows users to generate private keys for different coins securely and privately. Lumi core is an open-source software available on the public Github.
If you follow the simple Internet security rules described in our articles (Part 1 and Part 2), then the chances of getting hooked will be minimized. But you can also create a PIN code of increased complexity in the application so that you can definitely sleep peacefully.
Let’s move on to the facts: By the end of April 2021, the number of major thefts, hacks, and scams with cryptocurrencies amounted to $432 million. While this number may seem small compared to previous years, deeper analysis revealed a new worrying trend: DeFi-related hacks now account for more than 60% of total hacks and thefts. This is up from just 25% in 2020; in 2019, DeFi hacks were virtually non-existent.
Losses from cryptocurrency-related crime have declined in 2021, but theft in the decentralized finance (DeFi) sector has hit a record $156 million, according to a new report from analyst firm CipherTrace.
Today, we want to tell you about 10 DeFi projects whose security is at a high level. But how did we determine it? One arm of CertiK is a nonprofit, research-driven organization with a mission to empower trust in the blockchain for all.
The research team behind CertiK has developed a multi-faceted approach to blockchain security (and beyond!). By combining robust security audits with their novel solutions, including Skynet and CertiKShield, the team has developed a true ‘closed-loop’ approach to security. Skynet provides 24/7 security monitoring for on-chain smart contracts, whilst CertiKShield provides an on-chain alternative to insurance.
CertiK’s security innovation doesn’t stop there, they’ve developed DeepSEA, a verifiably secure programming language, alongside the CertiK Virtual Machine (CVM), and CertiKOS. This security-first tech stack sets new standards for security in blockchain, providing stakeholders with the safeguards need to transact with one another more securely.
It is really important for both the DeFi sector and the entire cryptocurrency world to have such projects that provide additional ways to verify security. After all, the very idea of blockchain is based on providing fast, decentralized and secure data transfer.
Based on data from the CertiK Security Leaderboard, we have highlighted the top 10 DeFi projects whose security has passed two verification stages and has proven its durability.
TOP 10 safe DeFi Projects
PancakeSwap is a Decentralized Exchange (DEX) based on the Binance Smart Chain (BSC) BEP-20 blockchain. The exchange acts as an alternative to platforms operating on the Ethereum blockchain. Compared to other DeFi projects that are built on the Ethereum blockchain, PancakeSwap has higher performance and lower fees. In addition, it uses the Automated Market Maker (AMM) model. This gives users the ability to trade digital assets without being matched against someone else since the order book does not exist. CAKE is the native token of the
PancakeSwap platform. It was released as the BEP-20 standard for the BSC blockchain.
This cryptocurrency can be used in different ways: staking (reward) participation in the lottery, participation in project management through voting, and much more. The project was created in September 2020.
AAVE is a decentralized finance protocol that allows people to lend and borrow crypto. It is also an open-source and non-custodial liquidity protocol for earning interest on deposits and borrowing assets. Depositors provide liquidity to the market in exchange for passive income, while borrowers can borrow at fixed or variable interest rates. The Ethland peer-to-peer network is based on the Ethereum blockchain, and the internal cryptocurrency Aave (LAND) is used as a collateral asset.
AAVE was created by Stani Kulechov. Previously, the project was called ETHLend. It was launched in 2017 after the ICO. A year later, the team rebranded the network and added new financial instruments. The main advantage of AAVE is the large selection of cryptocurrencies for use (about 20). One of Aave’s flagship products is “urgent loans,” which was billed as the first unsecured loan option in the DeFi space.
1inch is a DEX platform aggregator that brings platforms together and helps users find the most efficient exchange routes. Users do not have to manually search for the best exchange conditions. The whole process is automated and optimized. 1inch was founded by Sergej Kunz and Anton Bukov and launched in August 2020, and the project launched its own token in December 2020. 1INCH is the platform’s ERC-20 management token, which is used within the ecosystem and allows users to control the development of the system through voting.
4. Binance Coin
Binance coin is a cryptocurrency created by the Binance company. BNB started as an Ethereum-based token (ERC-20), then eventually moved to its own blockchain called the Binance Chain. However, unlike Ethereum, Binance Chain has only recently started supporting smart contracts.
The advantages Binance coin has: low cost and high transaction speed. Also, BNB can handle a large number of transactions and has no restrictions like the Bitcoin network. Additional features are available, for example, smart contracts and DeFi. On the Binance platform, it is possible to drain tokens and earn a % on this, as with the banking system.
Paxos is an ERC-20 stablecoin created by Paxos Trust Company and is a token that is backed one-to-one by USD deposits. Paxos is the world’s first regulated token controlled by DFS (New York State Department of Financial Services). A distinctive feature of PAX is that new tokens can only be created if an equal amount of dollars has been deposited into a Paxos regulated bank account. If the user decides to return the dollars, he sends PAX to the company and they are burned. The company does not charge any commission for the conversion or redemption of PAX tokens. The minimum conversion amount is $100. Paxos Engages Third Party Auditors to Verify PAX / USD Ratio
Since PAX is built on the Ethereum blockchain, it can be used as programmable money for smart contracts or to interact with dApps. It was created in 2018.
6. Celer Network
Celer Network is a networked system and not a separate blockchain. The platform runs instead on top of existing and future blockchains. Celer Network is a coherent layer2 scalability platform with multi-chain and cross-layer support. By combining State Channel and Layer-2 Rollup together, Celer serves as a platform to cater to a diverse set of applications such as micropayment, DeFi, and gaming in a complex scalability tradeoff space, whether the focus be real-time low latency, high throughput, or low-cost.
The platform uses a Proof-of-Stake (PoS) consensus variation called Delegated Proof of Stake (DPoS). With this algorithm, participants may stake their coins for a reward while transferring the responsibility of validating transactions to “delegates.” The project was founded in 2018. CELR token is an ERC-20 utility token. It allows the user to pay an on-net commission and cover other costs.
7. Tether (USDT)
Tether (USDT) is a cryptocurrency that uses the Bitcoin and Ethereum blockchains to conduct financial transactions and is linked to fiat currencies, in particular the US dollar, the Euro and the Japanese yen. For each currency, there is a token identical to its index, but with the suffix “T”: USDT, EURT, JPYT. The token was issued in 2015 by Tether Limited. The main idea of the developers of this token is to provide participants in the cryptocurrency market with the opportunity to use a stable digital asset (“stablecoin”), the rate of which is tied to the US dollar and does not experience such strong fluctuations as the rates of other cryptocurrencies. I.e., USDT in fact helps to fix the value of the crypto and insures against strong fluctuations in the financial market.
CertiK Chain is a security-first, delegated proof-of-stake blockchain for the trustworthy execution of mission-critical applications including DeFi, NFTs, and a whole range of dApps. Across protocols, blockchain projects can receive security insights with the Security Oracle, which provides real-time insights into on-chain transactions, identifying and flagging a wide range of malicious vulnerabilities before they occur. CTK is the native fuel of CertiK Chain, serving as the core utility token for on-chain functionalities such as operating the Security Oracle and CertiKShield systems, paying gas consumption of CertiK Chain, and voting for governance decisions within the network. The company was founded in 2017.
Akropolis is a company that operates an Ethereum-based decentralized finance protocol that seeks to provide an autonomous financial ecosystem for saving and growing wealth through things like borrowing and lending. To do so, it offers a series of products including AkropolisOS, a framework for developing for-profit decentralized autonomous organizations, Sparta, a platform for uncollateralized lending, and Delphi, a yield farming aggregator and tool for dollar-cost averaging.
The project uses an ERC-20 token, AKRO, for protocol governance across its suite of products. Akropoli was founded in 2017 by Ana Andrianova and launched on the Ethereum mainnet in June 2020
Tellor is a decentralized and secure Ethereum-based oracle for DeFi decentralized applications. TRB is the Ethereum-based utility token that powers the Tellor system. Tellor works by allowing users to send queries to the oracle network, where TRB tokens are used as an incentive for miners to choose a particular query. Tellor was co-founded by Brenda Loya and Michael Zemrose. Using Tellor facilitates the practical implementation of open source projects in which it is necessary to use the storage and use of data in smart contracts. The project was created in August 2019.
At Lumi, we believe that user safety is a top priority when building our application. Therefore, all private keys and data are stored on the user’s side. This revolutionary decision was made by us back in 2017 and since then, we have made significant progress in creating a truly high-quality product on the market.
LUMI Wallet is among the top 10 crypto wallets in the USA, UK and many European countries. We hope that you, our users and readers, will develop with us and explore the fantastic cryptocurrency world step by step!
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