{"id":207420,"date":"2021-03-21T10:17:00","date_gmt":"2021-03-21T07:17:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/default-auditing-for-defi-projects-is-a-must-for-growing-the-industry\/"},"modified":"2021-03-21T10:17:00","modified_gmt":"2021-03-21T07:17:00","slug":"default-auditing-for-defi-projects-is-a-must-for-growing-the-industry","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/default-auditing-for-defi-projects-is-a-must-for-growing-the-industry\/","title":{"rendered":"# Default auditing for DeFi projects is a must for growing the industry"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2780fd401b0\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2780fd401b0\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/default-auditing-for-defi-projects-is-a-must-for-growing-the-industry\/#How_to_bring_institutional_investors_into_DeFi\" >How to bring institutional investors into DeFi<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/default-auditing-for-defi-projects-is-a-must-for-growing-the-industry\/#The_possible_solution\" >The possible solution<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Default auditing for DeFi projects is a must for growing the industry <\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDMvZjBkM2NlNzktMDE1Yi00YWU4LTlmOTAtYzgyOGVkNjQ1MjQzLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-5a136f3a>The radical opportunity presented by decentralized finance has garnered significant attention from investors and speculators alike. The total value locked in DeFi protocols <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/debank.com\/ranking\/locked_value?chart_date=MAX\">grew<\/a> over 2,500% in 2020, from around $700 million in January 2020 to over $20 billion in December 2020. TVL is a more useful metric than market capitalization when it comes to DeFi, as it accurately represents the equity that investors are willing to commit to these protocols. And their commitment didn\u2019t end in 2020; this year alone, DeFi\u2019s TVL more than doubled, reaching $40 billion in February.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Was 2020 a \u2018DeFi year,\u2019 and what is expected from the sector in 2021? Experts answer<\/em><\/strong><strong><em> <\/em><\/strong><\/p>\n<p>While DeFi\u2019s growth over the last year can be largely attributed to retail investment, 2021 is shaping up to be the year institutions start getting in on the action. As yields from fixed-income assets continue to drop to historically low levels and unprecedented stimulus packages ratchet up inflation expectations, a massive amount of money is now seeking higher returns.<\/p>\n<p>Forward-thinking asset managers are turning to DeFi. Circle \u2014 the issuer of popular stablecoin USD Coin (USDC) \u2014 is set to launch the first high-yield digital dollar account to be aimed at institutions. By lending out to the capital-hungry crypto markets rather than oversaturated traditional markets, the account can offer up to 10.75% annual percentage yield. While it will initially serve only businesses, there are plenty of options that cater to individual investors.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_to_bring_institutional_investors_into_DeFi\"><\/span>How to bring institutional investors into DeFi <span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>During DeFi\u2019s explosive growth in 2020, dozens of separate attacks drained investor funds, with half of all crypto attacks in crypto <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/ciphertrace.com\/2020-year-end-cryptocurrency-crime-and-anti-money-laundering-report\/\">were<\/a> of DeFi protocols. Many of these exploits made use of tactics as new and creative as the protocols themselves. Others were repeats of previous exploits that remain frustratingly easy to prevent. While any loss of funds is unfortunate, the security of DeFi has improved greatly over the last few years.<\/p>\n<p>Getting listed on any major exchange now requires a project to have passed auditing, as it\u2019s simply too risky for exchanges to compromise on the safety of their customers\u2019 money. But meaningful security doesn\u2019t end there.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>The code is key: Solutions for overcoming DeFi security breaches<\/em><\/strong><\/p>\n<p>Worryingly, in 2020, there were attacks that resulted in money stolen from protocols that had passed a security audit. While auditing focuses on a snapshot of code prior to its deployment, the process cannot take into consideration the interactions of a contract once it\u2019s released into the wild. The dynamic rate of change in DeFi means that new tools and programs can pose new risks.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>As faith in audits falter, the DeFi community ponders security alternatives<\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_possible_solution\"><\/span>The possible solution<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Automatic security tools can continuously monitor smart contracts against a wide range of known vulnerabilities, even after they\u2019re deployed onto a public blockchain. Users can protect individual transactions, too, by requiring the contract with which they\u2019re interacting to meet a certain security threshold before the transaction can be confirmed and funds are committed.<\/p>\n<p>It\u2019s important to be protected while your contract is running, even if everything seems to be going smoothly.<\/p>\n<p>In addition to real-time security tools, there are a few options for decentralized insurance alternatives on the market today. There are solutions that can provide protection for user funds locked in many DeFi protocols, which give DeFi users peace of mind, knowing that their capital is secure in the face of unforeseen events.<\/p>\n<p>We envision a world of decentralized finance where protecting your assets is as simple as checking a box before placing a transaction, where on-chain <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> protects transactions before they h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>en, and where security is a foundational pillar of every platform.<\/p>\n<p>In combination with its unparalleled yields, a reputation for this kind of comprehensive security will help take DeFi from its current share of <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coinmarketcap.com\/\">around<\/a> 8% of cryptocurrency\u2019s total market capitalization to a level rivaling the legacy financial system.<\/p>\n<p class=\"post-content__disclaimer\"><em>This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.<\/em><\/p>\n<p class=\"post-content__disclaimer\"><em>The views, thoughts and opinions expressed here are the author\u2019s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.<\/em><\/p>\n<div>\n<div style=\"background: rgb(239, 239, 239); border: 1px solid rgb(204, 204, 204); padding: 10px;\"><strong>Daryl Hok<\/strong> is the chief operating officer of CertiK. Previously, he spearheaded corporate development at FiscalNote, a global machine-learning GovTech unicorn. He obtained a dual B.A. in economics and psychology from Yale University, concentrating in behavioral economics.<\/div>\n<\/div>\n<p><template data-name=\"subscription_form\" data-type=\"defi_newsletter\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/default-auditing-for-defi-projects-is-a-must-for-growing-the-industry\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Default auditing for DeFi projects is a must for growing the industry &#8221; The radical opportunity presented by decentralized finance has garnered significant attention from investors and speculators alike. The total value locked in DeFi protocols grew over 2,500% in 2020, from around $700 million in January 2020 to over $20 billion in December&#8230;<\/p>\n","protected":false},"author":1,"featured_media":207421,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDMvZjBkM2NlNzktMDE1Yi00YWU4LTlmOTAtYzgyOGVkNjQ1MjQzLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74894,75239,74868,74882,70375,4965],"class_list":["post-207420","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-blockchain","tag-decentralized-finance","tag-defi","tag-hacks","tag-cybersecurity","tag-technology"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/207420","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=207420"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/207420\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/207421"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=207420"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=207420"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=207420"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}