Smart contract hacks are a serious and recurring problem in DeFi, and safeguarding assets against malicious attacks is crucial. With this in mind, Quantstamp is excited to announce DeFi Protection, a new security product that will reimburse DeFi users for their losses in the event of a hack.
Addressing the Risks of DeFi
Decentralized finance, while offering unprecedented opportunities, also presents significant risks. Since 2019, hackers have exploited DeFi protocols nearly 500 times for over $6 billion, often leaving users with no recourse for recovering funds. DeFi Protection service aims to give users peace of mind while protecting their funds.
Introducing DeFi Protection
DeFi Protection is a security product that checks the safety of smart contracts, alerts users to any threats, and provides 24/7 support from security auditors. Alerts will include information about the attack as well as empower users with the knowledge to take swift action, such as withdrawing assets from the affected protocol. Notably, the product also features a guarantee program that will reimburse DeFi Protection customers for any losses due to a gap in Quantstamp’s security services.
To access the service, users simply select which protocols they wish to protect, the duration, and the maximum reimbursement amount in USDC. Aave, Compound, Curve, Lido, and Uniswap will be available at launch, with other protocols being added soon. The program is powered with support from Chainproof, a regulated primary insurance carrier for smart contract and slashing risks, and Tint, its insurance technology partner.
A Safety Net for US-Based Users
The guarantee program is regulated by the North Carolina Department of Insurance, making it the first program to legally serve United States residents. Users are required to undergo a KYC/AML check through Quadrata, a web3-native solution, to prove U.S. residency before purchase.
Quantstamp’s Commitment to Security
Smart contract audits provide an important layer of security, but it’s only one part of the stack. End users need to take extra measures to ensure their funds are secure. DeFi Protection was developed to provide end users with another method to stay on top of web3 security incidents. Along with smart contact audits, Quantstamp continues to explore new ways to keep users safe in our mission to secure the future of web3.
Learn more about DeFi Protection at https://defiprotection.com.