Lossless product review: Web3 security
When blockchain cybersecurity experts and white-hat hackers work together to restore trust in decentralized finance and Web3, it deserves applause and attention.
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Lossless is a startup that provides security services in the Web3 sector. A team of experts protects their clients from blockchain hacks, private key theft, vault exploits, and related financial losses. Lossless also provides a threat monitoring system and Token Minter. The project was launched at the beginning of 2021.
What products does Lossless offer?
Lossless Protocol
It is the company's key development, which monitors damaging actions in the blockchain, prevents unauthorized transactions, and recovers stolen altcoins. The Lossless Protocol uses special threat detection and reporting mechanisms based on staking. Protection is provided in real time. The protocol is the first tool in the field of cryptocurrencies that allows the mitigation of exploits.
Detection of suspicious activity is done on the Lossless Protocol platform. Holders of LSS, the platform's native token, assist in the detection of exploits in exchange for monetary rewards. This is realized through staking LSS and freezing hacker transactions with the help of bots for further investigation by the Lossless team.
The transaction is then analyzed by the technology team, and if fraud is confirmed, the recipient's address is blocked. After that, the transaction is canceled, and the stolen funds are returned to the owner. Thus, the protocol improves the security system of smart contracts, guaranteeing protection against exploits for blockchain project founders.
In order for the project code to detect a fraudulent transaction, the Lossless Protocol must be inserted into the tokens' smart contracts.
Source: LossLess Twitter
Vault Protection
It makes crypto projects more secure. The Vault Protection tool utilizes two independent procedures — wallet whitelisting and withdrawal limiting — to protect treasury wallets and liquidity pools.
Wallet whitelisting is a typical security feature in the crypto sphere. This list contains addresses of wallets that can interact with the vault. Others cannot take any action. This method is also typical for the distribution of tokens, where the creators of the project choose in advance which wallet addresses receive tokens.
Withdrawal limiting is a simple but effective method of preventing fraudulent transactions, which involves imposing a limit on the possible withdrawal amount. Transactions are blocked when they go over the limit.
Lossless Aegis
It allows the prevention of unauthorized transactions by tracking malicious activities and monitoring smart contracts. This additional security measure relies on oracles, which allow real-time monitoring of the blockchain. Lossless Aegis identifies suspicious addresses and a potential hack to detect a problem before an attack is made.
Token Minter
Lossless Token Minter allows the minting of ERC-20 hack-proof tokens for free. Blockchain project creators can generate altcoins on the Ethereum, BNB Chain, Polygon, Avalanche, Fantom, and Harmony networks without programming skills. After the minting of the token, the user can use the audit service from the partner company Hacken at a discount.
Lossless in action
In 2021, crypto lender Cream Finance was hacked for $19 million worth of ETH and AMP using a flash loan. The project's creators announced shortly after the hack that the Lossless team had assisted in the recovery of $16.7 million.
The Lossless developers have described the refund procedure in detail. It turned out that they have ties in the hacker environment, which made it possible to return the stolen funds.
The lossless startup protects the Web3 sector in order to restore investor trust in decentralized finance and the crypto industry.
The project's founders are constantly expanding its capabilities, investing a significant portion of their income in researching new tools to ensure the security of blockchains and tokens.
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