"Security audit agencies are already overburdened due to the growth in the number of DeFi initiatives. To some extent, contract audit is the first threshold to grasp the risks of smart contracts.
According to the interpretation of the security team, a complete DeFi = smart contract + front-end page. That said, after a smart contract security audit, there will still be several risks.
When we look at the audit report, what are we looking at?
What guidance and examples can contract audit actually provide a DeFi participant?
As the number of "Swap series" increases, incidents of "thunderstorms" and "runaways" of DeFi projects are also increasing.
Facing the community’s concerns about the risks of DeFi projects, many project parties have chosen to conduct contract audits, either to prove their innocence, or to win the trust of investors. Sometimes, contract audits for DeFi projects are also regarded as a kind of good to interpret.
This approach seems to be effective: After the founder of Sushiswap was cashed out and the control of the project changed hands, a piece of news about "the smart contract audit of the Sushiswap project is progressing smoothly" made Sushi immediately show a small The increase has also allowed some investors to regain confidence; after three consecutive projects of JustSwap had vulnerabilities, and it was accused that the project party had not done a thorough test and audit, the news that SUN, the official mining project of Tron, passed the audit report also Let the popularity of TRON community increase again.
At the same time, there are also some platforms that have been questioned in auditing due to loopholes. Last week, some investors raised concerns about the emerging "Swap" platform Moonswap about "found pre-mining", "contract without time lock", " There are many bugs on the platform and other issues, and its audit is questioned, which has aroused the attention of the community.
When we look at the audit report, what are we looking at?
What lessons and examples can contract audit actually impart to a DeFi participant?
While facing these problems, Blocklike also found that some people have made such a conclusion about the role of auditing: "Code can be audited, but human nature cannot be audited."
The audit scope is limited, and contract risks are hidden.
Under the DeFi boom, the current situation of many investors may be as described by Dovey, the founding partner of PrimitiveVentures: "Don't ask me if xxx can mine. Now one person helps me look at the new land full-time, and one person helps me look at the project full-time. There are also two full-time traders doing transactions (all kinds, including agricultural product management), and various internal and foreign aid programmers to help me check the contract security. I am a robot that confirms multiple signatures in wallets. Modern agriculture is not so simple.”
Indeed, contract security is a topic of concern to many investors. Recently, in order to remind investors of risks, the community has summarized such a DeFi ecological mind map and risk points:
1. Contract risk, code loopholes, unaudited, hacker attack causing asset loss
2. Private Key risk, no multi-signed DeFi contract means that those who hold the private key of the contract can change the contract at will or run away
3. Risk of impermanent loss, such as the impermanent loss of liquidity mining itself, especially the liquidity of the two risky assets has a high risk to the return.
4. The risk of transaction friction. Now the Ethereum transaction gas rate is extremely high, and several transactions may cost one ether.
5. The risk of operational errors. Mistakes in the transfer process lead to permanent loss of assets. Recently, there have been several large transfer errors. It is recommended to invest in foreign projects that have passed open source audits, multi-signatures, and community democracy and self-government, for reference only.
It can be seen that among the risk points that bear the brunt are "contract risks, code loopholes, unaudited, and hacker attacks causing asset losses." To some extent, contract auditing has become the first threshold for grasping contract risks.
When it comes to DeFi, judging from the situation and popularity of investors participating in unaudited projects, many people do not understand the meaning of security audits. As early as when Yam was launched, the Fomo sentiment in the market had already been aroused. Although Yam has been declared an "unaudited" contract written within a week, the popularity it has received is still staggering.
The network may claim a solid reputation in the crypto community. TRON smart contracts are written in a complex language, but without a careful smart contract audit, the protocol's advantages are useless.
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