We know Lossless as the ultimate hack mitigation protocol. They freeze fraudulent transactions. Once they confirm its fraud, they return stolen funds to their owners. That’s a great feature in and of itself. However, there’s more from where that came from. Lossless built five tools to make Web 3 more secure.
Three tools are already live in the Lossless Protocol, and two are under construction. So, it’s time to have a look at the these five products.
Three products are live and two are incoming – this requires a piece of content that explains it all in one place 🚀
Here you go – learn about:
✅ Lossless protocol
✅ Vault Protection
✅ Token Minter
✅ Security Oracle 🔜
✅ Token Relaunch Toolkit 🔜https://t.co/RD2oFkqsHL
— Lossless (@losslessdefi) June 9, 2022
What Is Lossless?
The Lossless Protocol is the main offering of Lossless. With this, they created a unique place for themselves in the crypto space. They are the world’s first crypto hack mitigation tool. As a result, the DeFi environment becomes more trusted and safer. They are all about restoring trust in Web 3 security. In April 2022, they launched their mainnet, as reviewed in our article.
Their main feature is to detect fraudulent transactions. Once they find such a transaction, they freeze the transaction in question. Now they start to investigate. How it works is a fairly technical process. However, we want to keep it easy and simple to understand. So, if they confirm that it is fraud, they return the stolen tokens to their owners.
This involves three steps.
- Urgent freezing—Hack spotting bots look for fraudulent transactions. They freeze the transaction. Once confirmed, the bot creator receives a reward.
- Fraud analysis—The Decision-Making Body reviews frozen transactions. They confirm whether it’s fraud or not. They can freeze a fraudulent address permanently.
- Returning stolen funds—The Decision-Making Body can return the stolen funds to its rightful owner.
Here’s a video that explains how the protocol works.
Project owners can make use of this advanced security tool. This vault uses whitelisting and withdrawal limiting strategies. Thus, treasury wallets receive an extra protection layer. Liquidity pools enjoy the same benefit.
Whitelisting is widely used in the crypto space. It allows for a specific list of wallets to gain access to certain areas or functions. The project owner can add or remove wallets at will.
Withdrawal limiting is a second-factor protection tool. If a fraudulent wallet wants to drain a protected wallet quickly, this tool prevents that. These protected wallets have a value and time limit.
Now, if a wallet is not whitelisted, anyone can interact with this wallet. However, they freeze the transaction. Like, once a withdrawal exceeds a certain number of tokens within a specified time frame. This can be an ‘X’ number of tokens in ‘X’ blocks.
The token minter generates Lossless wrapped ERC-20 tokens. These include burnable and mintable tokens. Lossless currently supports five chains. These are Ethereum, BNB Chain, Polygon and Avalanche. They added Fantom on June 9, 2022, as the fifth chain. Lossless will add the sixth chain, Harmony, shortly.
This is an outstanding tool that is free to use for project owners. On top of this, Lossless also offers two audits at a reduced price by their partners. These are Hacken and Chainsulting.
This video explains how both the Vault Protection and Token Minter tools work. These two with the Lossless Protocol are currently live. Our next step is to introduce two more tools that will hit the streets shortly. The Security Oracle and the Relaunch Token Kit.
This is one more way to secure your protocol. Oracles provide off-chain data to on-chain smart contracts. They deliver real-world data to blockchains.
The Lossless Security Oracle is on the lookout for shady wallet addresses. They can identify risky wallets that plan a hack or exploit. If they succeed this ID process, they can prevent attacks. Projects that activate this oracle, receive this information.
The first version of this oracle has features as shown below in the picture. They are currently working on the user interface. Over time, Lossless will add more features.
Source: Lossless blog
Relaunch Token Kit
This tool caters to existing tokens. They can still add the Lossless Protocol to their tokens and smart contracts. The relaunch token kit helps them to relaunch the upgraded tokens.
Currently, Lossless can only cater to tokens that are about to launch. This tool opens an entirely new opportunity for existing tokens.
The picture below shows the six steps that projects need to follow.
Source: Lossless blog
Lossless is a great project. With adding these new tools, Lossless takes another step forward. They cement their already unique position in the DeFi and Web 3 environments. As a result, these spaces become more secure.
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