Liquidity issues & systematic security
How do you solve liquidity issues and how to ensure user assets and systematic security?
Peel-to-Pool trading mode resolved the liquidity issues: shared LP capital pool integrated the liquidity by providing opposite positions for buyers; Asteria built a professional, comprehensive, and stable pricing and hedging system for all automated market makers.
Asteria applies a comprehensive risk management system to handle asset security, including Delta risk, Vega risk, Gamma risk, liquidity risk, and credit risks. Details can be found in our white paper embedded on the official website.
For systematic security, an experienced security expert from Team Asteria have multiple anti-hacking mechanisms:
Re-Entrancy Attack: External calls from Ethereum smart contracts can be hijacked by attackers whereby they force the contract to execute further code (i.e. through a fallback function), including calls back into itself. Asteria chooses to introduce a mutual exclusion lock. The ReentrancyGuard contract in the OpenZepplin component library implements this scheme well.
Arithmetic Over/Under Flows: Over/underflow of numerical caveats allow attackers to misuse code and create unexpected logic flows. Similarly, Asteria will use OppenZepplin’s SafeMath to avoid insufficient/overflow vulnerabilities.
Default Visibilities: The default visibility for functions is public. Therefore functions that do not specify any visibility will be callable by external users. Asteria always specifies the visibility of all functions in the contract. Recent versions of Solidity will now show warnings during compilation for functions that have no explicit visibility set, to help encourage this practice.
Floating Points and Precision: Asteria knows that it is very important to maintain the correct accuracy of smart contracts, especially when dealing with ratios that reflect economic decisions, so Asteria will ensure that any ratios used allow large molecules in the score.
Another strategy is to pay attention to the order of operations. The different calculation orders of multiplication and division will produce different precision.
Finally, when defining arbitrary precision for a number, Asteria will convert the variable to higher precision, perform all mathematical operations, and finally convert it back to output precision when needed.