Lossless, a decentralized finance (DeFi) security-focused protocol, and NewsCrypto have partnered to tackle hacks and increase digital asset safety.
The news platform announced the partnership with Lossless via an official blog post. According to the announcement, the collaboration will help spread the word to the crypto community on how Lossless can help safeguard smart contracts against exploits with just one line of code.
(1/4) Here’s a nice addition to Lossless milestones and yet another step towards broader adoption of next level DeFi security: we’re partnering with @NwcPublic to further spread the message about token safety measures that you can take in action 🔥 https://t.co/kzXoHiiTVu
— Lossless (@losslessdefi) June 17, 2021
Lossless, unlike many other projects who concentrate on prevention, focuses on exploit mitigation. Lossless adds a piece of code to any token in its care, and when suspicious transactions occur, it freezes them.
The suspicious/fraudulent transaction is frozen based on a set of fraud identification parameters, and stolen funds are returned back to the owner’s account after fraud verification. Also, these suspicious/fraudulent transactions are identified automatically or with the help of the community members (flaggers) who uncover malicious activities. In addition, flaggers are rewarded if correct.
The protocol noted that the safety measure was established due to the growth in cryptocurrency adoption which has also led to an increase of hacks and potential exploits. Notably, hackers are constantly evolving and developing new methods and strategies to take advantage of unwary users and exchanges.
Lossless Partnership to Stop DeFi Exploits
The blog post disclosed that, in 2020 alone, the DeFi space recorded billions of dollars stolen via hacks and exploits. Lossless, with its unique mechanism, would help curb this threat and ensure digital asset transactions are a lot safer.
In addition to freezing suspicious/fraudulent transactions, the Lossless protocol also promotes high levels of community participation. Users will soon have the ability to review such suspicious transactions via a dashboard. It is also worth noting that after a transaction is frozen (for up to 48 hours) due to a suspected hack or exploit, the Lossless Decision Making Body inspects and evaluates the situation. Meanwhile, LSS tokens are staked.
If the transaction is fraudulent, the asset is frozen for up to 14 days. If a flagger correctly stopped an exploit, they get rewarded with part of the coins they helped save.
Primarily, the partnership is to help educate the crypto community and users about the new concept of exploit mitigation. It would also inform users what to do during a hack, such as transaction freezing and how to avoid exploits.
Notably, the partnership will further boost Lossless’ vision to be a working solution and protection provider to the crypto ecosystem. NewsCrypto noted, “In the future, we’ll likely also implement their solutions as part of the NewsCrypto blockchain incubator for new projects, helping them take their security to the next level.”
As of the time of publication, LSS price was $0.318966 with a 24-hour trading volume of $1,059,529. LSS prices also fell by 3.8% over the last 24 hours. The token currently has a circulating supply of 11.8 million LSS coins and a max supply of 100 million.
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