Since the summer 2020, decentralized finance (DeFi), a space based on smart contracts has seen a boom. With a weak global economy and rising inflation, institutional as well retail investors are joining the DeFi train in search of higher returns.

DeFi, a new sector that is booming in crypto-assets trading, offers users a revolutionary opportunity to generate passive income. This has attracted a lot of attention from market speculators and asset managers who are forward-thinking.

According to data from DeBank.com the total value of DeFi protocol’s (TVL), increased by a remarkable 2500% between 2020 and December. It surpassed the $20 billion mark in December that year. Despite the volatility of cryptocurrency markets, this sector is thriving and recently achieved a TVL in excess of $100 Billion according to DeFiPulse.

This rapid growth has led to bad actors trying to siphon funds from users. Recent data from Elliptic, a London-based blockchain analytics company Elliptic has shown that DeFi hacks and scams will result in more than $10 billion in losses by 2021.

The potential for new projects to be canceled by these security flaws can also discourage investors from taking part in the DeFi ecosystem.

DeFi Sector: Chainsulting helps secure it

Chainsulting, a German company that specializes in DLT and cryptocurrency is located in Germany. It offers complete services including consulting, security audits and blockchain development.

It was established in 2017. The company is a trusted service provider that has served most of the 100 largest crypto projects by market value for many years. Some of the notable clients are DeFi heavyweights 1Inch and POA Network.

Chainsulting addresses a major problem: the inability to audit smart contracts properly. Although many blockchain audit firms exist, they lack the expertise or experience needed to identify bugs in DeFi smart-contracts and fix them.

Many decentralized protocols are now in the hands of hackers who have sophisticated tools and programs to hack into popular DeFi apps. Ciphertrace research shows that many attacks against crypto projects took out investor funds in 2017, with half of those attacks targeting the DeFi sector.

Chainsulting offers comprehensive audit and security solutions that address security concerns. It currently secures top chains, such as Ethereum and Binance Smart Chain. The company also offers world-class protection for many DeFi protocols.

Security services for smart contracts that are not encrypted help to reduce risk in both the DeFi ecosystem and the blockchain ecosystem, and promote transparency and trust among the crypto community.

The Chainsulting Audit Solution is Different!

Chainsulting’s innovative auditing process is different from those used by other companies that specialize in blockchain security. Chainsulting uses German security and tech standards in order to guarantee 100% coverage of every audit.

Audits involve both automated vulnerability tests and manual security checks. Automated tests utilize the most up-to-date tools, such as Mythril. Slither. Oyente. MythX. Solhint. HoneyBadger. These allow the auditors to find critical flaws that can be detrimental to DeFi protocols. Line by Line, SWC Register, Overflow and CVE are all integrated into manual testing.

Chainsulting is a passionate team of experts who examine code and perform gas optimizations and conventions checks to identify areas in DeFi protocols which can be improved.

The team also performs logic testing to verify claims that represent up to five functions in smart contracts. This helps improve security and efficiency.

Auditors will prepare an audit report that is transparent and complete. This includes recommendations for dev teams on ways to fix loopholes like reentrancy attacks and oracle manipulations.

Finaly, an audit team gives developers a Certificate of Compliance. This signals to investors that it is protected from any exploitation by unscrupulous actors.

Chainsulting shares information reflects all the blockchain smart contract audits they’ve done on their GitHub. The audit results are also posted on Twitter (NYSE :), authenticating the fact that the project has gained trust in Germany and is now open for widespread use.

Take a look at the latest DeFi Hacks

DeFi Pulse reports that the TVL secured in DeFi has seen an explosion in the last year and will reach $100B in 2021. The hackers are looking for quick riches in this fast-developing industry.

There have been numerous reports that there has been an increase in malicious actors using clever schemes to get into the best DeFi apps. DeFi has also led to developers rushing to launch new projects, without giving smart contracts the attention necessary to protect investors.

Numerous DeFi attacks continue to occur due to protocol backers’ security negligence. CryptoSec is a crypto-focused platform that exposes scams and hacks. It recently disclosed that there were 73 DeFi vulnerabilities accounting for $1.5 billion of losses.

The most recent hacks were on PancakeHunny and Cream Finance lending protocols. This has resulted in devastating losses of nearly $200M during the last three months.

Author’s Thoughts

Numerous prominent DeFi protocol exploits have been linked to the DeFi boom, which is putting crypto in the spotlight. This highlights the need for project funders and investors to be more vigilant about the security of smart contracts.

DeFi code audits have become an indispensable part of DeFi projects that seek to stop the devastation-inducing attacks.

Chainsulting is one of many blockchain security companies that are helping DeFi Ventures to thrive by providing them with the best security tools and services in order to combat the ever-present danger of cybercrime. This German company, reputable and well-respected, has earned an excellent reputation through providing trusted smart audit services for 150+ clients in the past 4 years.

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