Decentralized Finance has grown to be a great success this year, with over 75 billion total value locked in different protocols. Inevitably, this surge in interest coupled with the fear of missing out on potential benefits has attracted many people from around the world, both good and bad.
While most people want to benefit from decentralized banking services, a few malicious actors look to exploit DeFi. Last year, 17 exploits and hacks occurred, resulting in the loss of $154 million. The reason? The DeFi space is new, unregulated, and has several attack vectors that are yet to explore. Another reason for these attacks is decentralized exchanges (DEXs) – which do not have any AML or KYC procedures to onboard users. Moreover, DEXs do not review/audit projects launching on their platforms. Therefore, it is easier for hackers to execute a hack or issue scammy tokens while remaining undetected.
However, with the growing DeFi space, new blockchain-based solutions, such as Soku Swap, have emerged to tackle the increasing attacks in the DeFi world.
Overview of Soku Swap
Built on Ethereum and Binance Smart Chain, Soku Swap is a decentralized exchange that uses Automated Market Maker (AMM) smart contracts to trade ERC-20 and BEP-20 coins on both networks. It also allows users to create liquidity pools of both tokens.
To ensure users access legitimate protocols, Soku Swap has a verification feature to research new tokens. This also helps DEX users in avoiding any pump and dump tokens and find projects that are investment worthy. Soku Swap evaluates the following characteristics:
- Community – An active, engaged community of followers is an indicator of the strength of a project.
- Robust Code: The code backing the whole infrastructure must be robust and updated as Soku Swap checks Github to verify this.
- Funding: It is important for a project to have a source of revenue, which ensures it can carry out its day-to-day operations and execute strategies for improvement.
- Team: The team is the key driver behind the success of a project. It’s paramount that a project has strong players with a demonstrated track record of expertise in building technology-based solutions.
- Liquidity: The team goes through the liquidity of each token listed to ensure fair price for everyone, market stability and transaction times.
- Sellability: Soku Swap will go through each project’s whitepaper to ensure the tokens are sellable by everyone and not just the project founders.
As the DeFi space continues to reach new heights, it becomes prey for various malicious actors who are always looking to exploit the system. While DEXs refrain from prying over users’ privacy, it is important for them to take imperative security measures. Soku Swap has stepped towards making blockchain-based solutions more secure than ever by researching and reviewing new projects and providing crypto education. This not only helps individual investors from capital loss but also saves the crypto ecosystem from potential hacks and scams while educating new users who are just getting into the space.