As the first Social Trading-type asset management protocol on BSC, how does DePlutus ensure the safety of users’ funds?
July has come and gone, and in the past 30 days, six BSC public chain projects have exploded in mines, namely BurgerSwap, an automated market maker, xWin Finance, an on-chain index fund management platform, Impossible Finance and Eleven Finance, a revenue aggregator, suffered a lightning loan attack, and Merlin, a machine gun pool project Lab’s newly functional smart contracts were hacked, and the even more egregious StableMagnet Finance, an automated market maker for stablecoin exchanges, rolled up $22 million and ran away, for a total loss of nearly $40 million from these six security incidents. However, this loss amount is almost negligible compared to the $300 million caused by the major security incidents in 14 BSC projects throughout May.
The main reason behind the frequent attacks on BSC projects has become an industry consensus is that a large percentage of projects on BSC simply fork the code of the ethereum eco-protocols and recklessly combine different protocols, which gives hackers an opportunity to take advantage of it. Once a vulnerability appears in a certain protocol, hackers’ lightning loan attacks will have a cascading effect in similar forking projects.
How can mature capital management protocols circumvent flash lending?
DePlutus is the first asset management protocol in the Social Trading category to go live on the BSC. In the face of the ongoing flash credit attacks since May, Andrew Shi, CEO of the DePlutus protocol, said, “The root cause of flash credit is nesting calls in the same transaction, making multiple layers of contracts, manipulating prices, and achieving arbitrage. The DePlutus protocol is designed to be effective in avoiding flash credit attacks by prohibiting external calls to some of the functions of the contract at this stage of the business.
In addition, DePlutus as a native project, the code development took 11 months, and the full-featured protocol deployment on Ether and BSC was completed one after another only after the security audit by Slow Fog Technology, an authoritative third-party organization in the industry.
Andrew Shi said, “While teams in the DeFi space are scrambling to get the project online as soon as possible to take advantage of the market, we insist that only by fully securing DePlutus users’ crypto assets can we truly win the DeFi asset management race and ultimately win. putting the security of its users’ assets at the forefront, providing reliable protection for investors in on-chain fund products through a range of security mechanisms.”
Andrew Shi has been engaged in investment on Wall Street for 10 years, and as a senior investor, he is particularly cautious about risk control, “As an asset management protocol, controlling risk is a prerequisite for innovation, and only by avoiding various potential risks and achieving the 1 of protocol security, the 0 formed by the efficiency improvement brought by innovation will be meaningful.”
Punching a set of combinations of protocol security
DePlutus protocol designed a set of risk control mechanisms for on-chain fund investors, including: unified fund pool, secondary whitelist, self-investment mechanism, maximum retraction mechanism, etc., plus the code audit of authoritative third party, this set of combination punch down naturally to the bottom of security issues.
Fund pool: The fund on the chain established under the DePlutus protocol, the fund manager and investors’ funds are pooled into a pool of funds. The fund manager only has the authority to trade through the smart contract, not the authority to withdraw funds, ensuring the safety of funds.
Secondary whitelist: The secondary whitelist of trading currencies and trading platforms circumvents the subjective evil behavior of traditional fund managers such as knock-offs and rat positions. The trading coin whitelist circumvents high-risk and low liquidity cryptocurrencies, and the trading platform whitelist further restricts the DEX platforms that can be invoked, eliminating dirt dog projects and ensuring maximum transaction security.
Self-investment mechanism: The fund manager is required to contribute a minimum of 2% of his own money for the subordination, and the self-invested money is locked in the contract and cannot be diverted.
Maximum retracement mechanism: helps users to protect against market risks in a volatile market environment.
In DePlutus Protocol, the whole transaction is on the chain and the process is closed, which realizes capital security, transaction transparency, and traceability, and solves the problems of the previous Token Fund model of “something happens when it gets big”, as well as the problems of security, sustainability and scale, and brings a feasible new paradigm for crypto asset investment in DeFi.
Triple Gain Attractiveness
If security is the backbone of the DePlutus protocol, then innovation is the DePlutus vernacular.
Compared to the older generation of asset management protocols in the DeFi space, DePlutus is the first in the industry to propose the concept of “on-chain fund atomization” and is the first to implement the exclusive on-chain fund token function (DF Token). DF Token represents the investor’s share and value in the fund, and can be transferred and traded instantly without waiting for the fund to be redeemed at maturity. DF Token realizes the atomization of on-chain funds and brings investors more liquidity and higher capital efficiency.
As a hardcore asset with rigid principal and return payment at maturity, DF Token can also be nested with other DeFi protocols and can be called by other protocols to realize collateral, lending and derivative transactions in other DeFi, further expanding the breadth and depth of the DePlutus protocol ecology.
Unlike traditional funds where investors can only profit from the appreciation of the underlying assets, DePlutus protocol users can earn triple benefits: better investment returns by putting their money together with the fund manager; repeat investment returns by instantly transferring their investment credentials DF Token; and earn PLUT reward returns by participating in liquidity mining of the protocol’s governance token PLUT with DF Token.
Making the DeFi Capital Management track compelling again
DePlutus, with its many advantages such as leapfrog innovation, native projects, complete risk control and triple returns, comes with a star project quality, bringing peace of mind to on-chain capital management users and DeFi participants against the backdrop of frequent lightning outbreaks on BSC on-chain projects, and making the long-silent on-chain capital management track draw the attention of the DeFi market again.
The DePlutus DApp, which includes full functionality such as fund creation and trading, is already live on Ethernet and BSC, and 70% of the total protocol token PLUT will be rewarded to users in the form of liquidity mining.
The DePlutus protocol will soon launch IDO, which is a small step for DePlutus and a big step for on-chain asset management innovation.
About DePlutus Protocol (PLUT)
DePlutus Protocol is a new generation DeFi asset management protocol based on on-chain operations and the only protocol in the industry that has implemented the function of an on-chain fund exclusive Token (DF Token).DePlutus aims to build the leading infrastructure in the asset management field and open the era of on-chain funds belonging to everyone.DePlutus has passed the code audit of Slow Fog Technology DePlutus has been audited by Slow Fog Technologies and is live on the Ethernet mainnet and BSC.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/with-6-bsc-projects-bursting-into-flames-in-june-how-does-the-deplutus-protocol-and-ensure-the-safety-of-user-assets/
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