Hacking DeFi protocols are one of the significant obstacles that are preventing DeFi mainstream adoption. As a result, an ambitious decentralized finance project aims to alleviate this problem.
What is Lossless Protocol About?
The Lossless protocol is a security project which claims to be able to avoid fraudulent transactions. It can then reverse them to return stolen funds to the victims of DeFi hacks.
It does this by having the token creators insert its code into their protocol to mitigate losses due to exploits. The protocol uses a set of fraud identification parameters to flag spurious transactions.
Source: Lossless
Returning Hacked DeFi Funds
Lossless was put into action recently when it managed to recover ETH stolen from the Cream Finance protocol. In a tweet on October 4, Lossless showed a transaction where 5,152.5 ETH was rescued from a hack in late August.
Here's the TX that shows C.R.E.A.M. Finance recovering 5,152.5E, stolen on August 31st. pic.twitter.com/iPxbzpuGlV
— Lossless (@losslessdefi) October 4, 2021
Therefore, Lossless stated that it has extensive connections within hacker circles to advise product strategy and blockchain security. Following the Cream Finance exploit, it introduced its team to a white hat working within its network.
On the other hand, Cream Finance stated that Pascal Caversaccio and Lossless earned 50% of the bounty for their work.
We would like to thank our community for the great support, with special thanks to @losslessdefi and @pcaversaccio who have earned the 50% bounty.
Thanks to them we were able to track down and identify the hacker who we immediately engaged.
— Cream Finance 🍦 (@CreamdotFinance) October 1, 2021
Above all, Lossless stated that it would launch a Lossless hack-mitigation tool. This will allow token developers to take a hands-on approach to prevent exploits. Also, They will be able to freeze transactions for 24 hours until a closer investigation can be concluded.
Other DeFi-Hacking News
DeFiYield launched a database detailing losses from hacks in late August. The REKT Database currently reports that USD 1.7 billion has been lost to crypto hacks, scams, and exploits over the past five years.
On the other hand, the largest to date is the Poly Network which lost over USD 600 million in August 2021. Luckily, the hacker was benevolent and returned the funds. However, many others have not been so fortunate.
$LSS Token Price
Lossless has its governance token called $LSS was trading in USD 0.496 and has increased 33.1% in the last 24 hours when writing this article. Also, $LSS 24-hour trading volume is currently USD 11,831,249 with a marketcap of USD 11,106,957.
Its circulating supply is 22,373,970 of $LSS tokens and a total supply of 100 million.
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