How DeHive Ensures Top-Notch Security in Current Market Conditions
2022 has been rather challenging for the DeFi industry. Some of the biggest hacks, including the $624M-worth Ronin attack, have happened this year. And it hasn’t even been 5 months!
Obviously, high-level security has to be a priority for all DeFi protocols, but only a few take proper care of it. That’s why today, we’ve decided to share details on how we enable top-notch security for DeHive so that you are sure that your data is safe with us.
Modern security risks in DeFi
There are dozens of ways to breach protocol security. Unfortunately, not all of them are as “cunning and malicious” as you might think. On the contrary, some hacks become possible due to very simple mistakes in the smart contract code and subsequent vulnerabilities.
Here’s a brief list of the most common reasons for data breaches and protocol hacks:
- Code vulnerabilities that can be detected during a security audit.
- Loopholes in smart contract logic.
- Inefficient implementation of smart contract access control.
- Inaccurate liquidity pool estimates or inaccurate math that leads to price manipulations (often through the flash loan attack).
- Compromised private keys.
- Ponzi schemes and rug pulls created by protocol owners and project teams.
- Vulnerabilities on bridges or validators.
All of these risks can be mitigated if the project team has enough experience in the industry and takes good care of their users’ security. At DeHive, we do. And we are ready to prove it.
DeHive protocol security
DeHive was created and is fully backed by Blaize — a leading blockchain development and security services provider. This is one of the main reasons why we take DeFi security seriously and ensure that our products are in line with the best market standards.
When the team was building DeHive and all our DeFi instruments, we aimed for high efficiency, profitability and, of course, security since these are critical factors for our end users.
Here’s what we’ve done to enable high security for all DeHive users:
- Internal smart contract audit. As our fantastic developers had finished working on the DeHive smart contract, our internal team from the Blaize.Security department conducted the first audit to ensure that the protocol is secure and there are no vulnerabilities.
- Two external smart contracts audits. We asked other experienced auditing teams, Hacken and Zokyo, to conduct additional smart contract security audits. This way, we could double-check the protocol and make sure that it is safe for users and smart contracts can be deployed. You can check the final reports on these smart contract audits via these links: Hacken, Zokyo.
- Secure technical solution. Another essential factor was to use the most advanced DeFi practices for our products. That’s why we substituted AMM technology that is frequently used in other protocols with oracles, thus making DeHive even more secure.
On top of that, our crypto index technology is built with no real access to users’ funds. All deposited money is stored either on the Cluster contract, which works as a security vault, or in the original farming protocol. This protocol’s strategies are optimized regularly, which ensures higher security of all DeHive instruments.
Moreover, all the funds placed for farming share their security with the farming protocol since the token is actually deposited there. You can experience that with our Stable instruments, which store all user funds in the Curve protocols by means of our contract with the auto compounding mechanism.
In the current market conditions, taking care of protocol security is essential. DeFi hacks happen every week (or even every day), so prioritizing security means staying afloat.
At DeHive, we put security first, enabling the most effective practices to take care of our users’ data. We believe that only this way we can develop a really valuable product and help users get profit with no effort and no stress.