The Lossless Protocol mainnet is now live. Their Core protocol detects fraud and freezes it. Once they confirm the hack, they return stolen funds. Simple, yet effective. Still, they are very much undervalued. Plenty of protocols that got hacked didn’t know about Lossless until after they got hacked.
Lossless Protocol finished all test nets. The first release of the mainnet is on Ethereum. Other chains will follow soon. They are giving a fighting chance to all DeFi protocols to recover any stolen funds. Let’s take a look at the current state of Lossless.
The Lossless Mainnet
Hacks seem to be an unfortunate part of the crypto world. Lossless is the first public project that helps other protocols to recover their hacked tokens. By releasing their mainnet, Lossless can now reach more projects. The first release is on Ethereum. However, there are plans to follow up with more chains. The BNB Chain, Polygon, Harmony, Avalanche and Fantom are on the list.
The bug bounty platform Immunefi reported a $1.22 billion loss on hacks in Q1 this year. Hackers stole about half of that in the Ronin-Axie hack. The hackers took a staggering $625 million there. Just a few days ago, the FBI linked this hack to the North Korean Lazarus group. According to their Medium blog post, Lossless could have helped with this hack. The bots built by the Lossless community would freeze the transaction. This creates time to confirm the transaction.
It is just one sample of how Lossless can work. The Lossless protocol can deal with the following kind of hacks.
- Flash loans—Loans that are repaid in the same block or transaction. They are often used for hacking smart contracts.
- Exchange hacks—Can happen to both a CEX or a DEX.
- Wallet hacks—Happens mostly due to security leaks, A fave for hackers.
- Token minting—Hackers can use and abuse a minting function in the contracts.
- Rug pulls—When a team takes all funds and do a ‘runner’.
🚀 IT'S LIVE 🚀
Soon available on all supported chains, and every project that has implemented us will be #Lossless protected 🕵️
— Lossless (@losslessdefi) April 14, 2022
How Does Lossless Work?
The way Lossless works is simple and straightforward. Projects can add a piece of code into their tokens. As a result, Lossless can now freeze any transaction from these tokens. After that, the team can review the transaction. Did you know that USDT can do the same? In case somebody stole your Tether, they can now burn your USDT. Lossless takes this a step further. Instead of burning your funds, they can retrieve it.
- The Lossless community can build bots. Once they stake 2,500 LSS, they can send the bots out to the coded tokens.
- The bots that find a fraudulent transaction can freeze it.
- The Lossless team reviews the transaction.
- When they confirm it as a hack, more action is underway. The Finders receive a reward.
- However, if it is a false alarm, the finder loses his stake. Lossless unfreezes the funds.
Once it is a confirmed hack, the transaction remains frozen for 14 days. This allows the team to return the transaction. One of the benefits for token owners is that there are no upfront costs. However, there is a fixed percentage fee for the saved hack.
This is a great system, and it is surprising how many projects still don’t know about Lossless. On the other hand, their announcement on Twitter of their mainnet going live, received lots of positive feedback. This event will put Lossless Protocol a bit more on the map. DeFi will become a better place because of it.
Source: Lossless whitepaper
The Lossless Token Price Activity
Currently, the price of the LSS token is $0.724289. That’s 6.27% down during the last 24 hours. However, the token is 7% up over the last 7 days and 46.9% over 14 days. During the last 30 days, the token is up 114%. With a market cap of $35 million and 47.8 million tokens out of 100 million in circulation, this is a steal. The ATH of $2.61 from October 2021 is hopefully in sight again.
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