Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.
NewsCrypto, a decentralized platform that provides an all-suite crypto service to investors and traders, announced on June 27 that it has partnered with Lossless, a security-focused decentralized crypto project. The announcement comes amid the rising cases of DeFi hacks, with over 50% of 2020s crypto hacks being attributed to this upcoming ecosystem.
DeFi has been a sea of opportunities with futuristic financial innovations ranging from decentralized exchanges, lending platforms and derivative markets, amongst other products. NewsCrypto is one of the DeFi solutions that seek to enhance the growth of decentralized markets by providing traders with advanced analytical tools.
The NewsCrypto platform features trading tools such as educational material, trading simulator, market indicators and community predictions. These analytical tools equip traders with the right information to make decisions or start their trading journey. However, the platform was still exposed to potential hacks until its recent partnership with Lossless.
NewsCrypto Partnership with Lossless
Unlike typical security solutions, the Lossless protocol takes a unique approach to prevent crypto hacks, where suspicious transactions can be frozen and reviewed. This decentralized open-source ecosystem allows DeFi products to add a piece of code to mitigate security threats through its underlying infrastructure.
Ideally, the Lossless protocol can automatically freeze suspicious transactions or with the help of its community members and finders. This platform incentivizes community participation by enabling users to monitor and analyze for hacks, after which they can report any suspicious transaction for freezing. Furthermore, the hack mitigators can stake Lossless native token ‘LSS’ to receive network rewards for stopping potential hacks.
NewsCrypto has since stated that Lossless security fundamentals will increase their platform’s value significantly. According to the press release, the partnership will enable NewsCrypto to educate its users on advanced exploit mitigation systems. The firm also noted that it looks forward to integrating the Lossless decentralized security solutions with its new blockchain incubation projects.
“While there’s been billions of dollars stolen with the help of DeFi exploits in 2020 alone, such security projects and development are of utmost importance, and we’re looking forward to our collaboration with Lossless, creating a safer place for everyone in crypto.” read the announcement.
A Secure DeFi Future
As mentioned earlier, the DeFi market has been prone to hacks that have resulted in billions of losses in investor money. This trend is one of the detrimental factors to DeFi morale, as many newbies will leave the industry as soon as they have parted with their money. While some crypto veterans may consider it a ‘tuition fee’, it is crystal clear that DeFi can only survive if the ecosystem is secure enough to build confidence around the potential market.
The route taken by NewsCrypto is just the beginning of securing the DeFi market for mainstream adoptions. This all-in-one crypto suite will now provide exploit mitigation systems that traders can leverage while using the platform for daily analysis and crypto market updates. In addition, the traders have access to the NewsCrypto native token ‘NWC’ with the flexibility of swapping it across three chains; Ethereum, Stellar and Binance Smart Chain (BSC).
NewsCrypto further expressed optimism in its product suite following the partnership with Lossless,
“With the help of this partnership, we’ll be able to educate our community and users about the new concept of exploit mitigation and transaction freezing while also introducing Lossless as a working solution and protection provider.”
The DeFi market is still at its experimental phase, where early participants are likely to make lucrative gains through incentives. However, it comes with a high risk which includes the general crypto market volatility and hacks. The latter shortcoming stems from the ecosystem’s underlying infrastructure – a fundamental that can be altered or enhanced to make the market secure. Nonetheless, it may take a while before we have foolproof solutions to ensure that DeFi innovations are sustainably secure in the long term.