In 2023, the digital asset landscape faced a dramatic increase in security incidents, emphasizing the growing threats within DeFi.Recent analyses revealed that the cryptocurrency industry experienced a loss exceeding $1 billion due to a range of security breaches, including contract vulnerabilities and sophisticated phishing schemes that go beyond the security measures pre-launch. This marked a significant uptick in both the frequency and sophistication of attacks compared to previous years, highlighting the critical need for enhanced security measures and innovative solutions to safeguard digital assets.
SKR is leading the way in DeFi security by having implemented post launch security measures, going beyond the traditional security methods. Lossless Protocol allows the community to participate in the security of the proctor through it's reporting mechanism, allowing for suspicious transactions to be frozen and even reverted if identified as malicious. This enables rapid resolution in the event of an issue, minimizing potential losses and bolstering confidence in the security of digital assets for all users.
In cases of an attack, the DAO, Saakuru Labs, or the community, can report the suspicous transactions and block the funds from being transferred further. Lossless Protocol initiates it's investigation and voting mechanism into the report. If the report is deemed correct, the stolen assets are returned to a secure wallet of the asset owner.
Revert mechanism initiation is paid in LSS, 2,500 per report. After SKR funds are restored, operational costs are applied:
7% goes to Lossless protocol as a solution provider
3% is burned
The Saakuru Token (SKR) enhances DeFi security by empowering the community to detect and reverse suspicious transactions, significantly reducing the impact of hacks and asset losses.
Example of how Lossless protection can save whole ecosystem:
