Lossless Launches Protocol to Prevent Crypto Hacks

Lossless Launches Protocol to Prevent Crypto Hacks
  • Lossless launched its Core Protocol on Ethereum’s mainnet last week.
  • Its core protocol allows them to “spot hacks, freeze them and revert stolen funds.”
  • Chains including BNB Chain, Polygon, Harmony, Avalanche, and Fantom will soon follow Ethereum’s Lossless Protocol launch.

The first DeFi hack mitigation tool Lossless launched its Core Protocol on Ethereum’s mainnet last week, April 14. The company disclosed in a tweet that all supported chains and projects that implemented them will be “#Lossless protected.”

The Lossless Core Protocol provides protection against DeFi hacks. Specifically, it allows them to detect hacks, freeze them, and revert stolen funds. This provides all token creators a fighting chance to recover stolen funds at any form.

According to the bug bounty platform Immunefi, Q1 of this year has reported a $1.22 billion loss on crypto hacks. Almost half of the amount hacked was an exploit via the popular Axie Infinity’s Ronin network. The hackers, in which the FBI linked the hack to the North Korean Lazarus group, stole $625 million from Ronin.

Lossless is the first DeFi hack mitigation tool that helps token creators to recover their hacked tokens. The company first released its mainnet on Ethereum and in the following days, BNB Chain, Polygon, Harmony, Avalanche, and Fantom will also be added with their Lossless security.

The Lossless protocol helps token creators deal with hacks including smart contract hacks (flash loans), hacks on exchanges, wallet hacks, abuse in minting contracts, and rug pulls.

Lossless simply operates by adding a piece of code to the project’s tokens. By doing this, their team can now freeze and review the transactions from these tokens. The team will freeze the transaction for 14 days once a hack is confirmed, which allows them to retrieve the stolen fund.

Token owners will not pay any upfront costs by availing of their services. Yet, there will be a fixed percentage fee for the saved hack — a small price to pay for something so devastating an amount hackers could exploit.

Before their announcement on Twitter, many projects were still unaware of Lossless’ great system. Lossless has received lots of positive feedback by revealing its launch on Ethereum. This means that the Lossless Protocol will be more visible to many token creators.

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Bryan is a gamer who became genuinely interested in crypto after his initial exposure to Play-to-Earn games like Axie Infinity and Pegaxy. He has basic knowledge of technical analysis and is keeping an eye out for interesting developments in the metaverse and GameFi space.