As the industry searches for solutions, artificial intelligence (AI) and machine learning (ML) have emerged as potential tools to enhance DeFi security. But can AI truly make smart contracts more secure?

The Challenges of Smart Contract Security

Smart contracts are self-executing agreements written in code and deployed on blockchains. While they remove the need for intermediaries, they are also vulnerable to coding errors, logic flaws, and unforeseen attack vectors.

Some common security risks include:

• Reentrancy Attacks – Malicious contracts repeatedly call a function before its previous execution is completed, allowing an attacker to drain funds.
• Flash Loan Attacks – Exploiting DeFi lending protocols to manipulate market prices or execute arbitrage strategies with zero upfront capital.
• Oracle Manipulation – Altering the price feed data used by smart contracts, leading to erroneous executions.
• Integer Overflows/Underflows – Errors in arithmetic calculations that can lead to unintended behavior.

Traditional methods of securing smart contracts rely on manual audits and static analysis tools. However, these approaches are not foolproof, as new vulnerabilities continue to emerge. This is where AI and ML could play a transformative role.

How AI Can Enhance Smart Contract Security

Machine learning models excel at pattern recognition and anomaly detection, making them well-suited for identifying potential security threats.

Here’s how AI can improve DeFi security:

1. Automated Smart Contract Audits

AI-powered auditing tools can scan smart contract code for vulnerabilities more efficiently than human auditors. By training models on historical exploit data, AI can detect code patterns associated with past vulnerabilities and flag potential risks.

2. Real-Time Threat Detection

AI-driven monitoring systems can analyze blockchain transactions in real time to identify suspicious activity. For example, an AI system could detect an unusual series of transactions that resemble a flash loan attack and trigger an alert before significant damage occurs.

3. Anomaly Detection in DeFi Protocols

By continuously analyzing blockchain data, AI can identify abnormal behavior, such as sudden liquidity withdrawals or irregular trading patterns. These insights can help protocol developers implement automated responses to mitigate risks.

4. Enhancing Smart Contract Formal Verification

Formal verification is a process that mathematically proves the correctness of smart contract code. AI can assist by optimizing the verification process, making it more efficient and scalable.

5. Predictive Security Analysis

AI models can predict potential vulnerabilities before they are exploited by learning from historical attack data. This proactive approach can help developers strengthen smart contracts before deployment.

Challenges and Limitations

Despite its potential, AI in smart contract security is not without challenges:

• False Positives and Negatives – AI models may flag safe contracts as risky or fail to detect novel exploits.
• Data Availability – AI relies on training data, but the constantly evolving nature of blockchain exploits makes it challenging to keep models updated.
• Computational Costs – Running AI-driven security systems in real time can be resource-intensive.

The Future of AI in DeFi Security

As DeFi continues to evolve, AI will likely play an increasingly vital role in securing smart contracts. Future developments may include AI-powered autonomous security agents that not only detect threats but also take corrective actions on-chain.

While AI is not a silver bullet, its integration with existing security practices can significantly reduce risks. By combining machine learning with manual audits, formal verification, and real-time monitoring, the DeFi ecosystem can move toward a more secure and resilient future.

Synopsis

AI and machine learning offer promising solutions to some of DeFi’s biggest security challenges. While there are still limitations, the technology is rapidly advancing. As the DeFi space matures, AI-powered security tools could become essential in safeguarding billions of dollars locked in smart contracts. The question is not whether AI can improve DeFi security but rather how quickly it can be integrated to stay ahead of emerging threats.

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In this article, we’ll explore what smart contract audits are, their role in enhancing security, and how they build trust in the DeFi ecosystem.

What Are Smart Contract Audits?

A smart contract audit is a thorough review and analysis of a blockchain contract’s code to ensure it behaves as intended without any exploitable bugs or vulnerabilities. Typically, an audit is conducted by a third-party security firm or team of experts who examine the contract’s structure, logic, and functionality. These audits verify the integrity of the code, ensuring it aligns with security best practices, and often simulate various scenarios to see how the contract responds to attacks.

The Importance of Smart Contract Audits in DeFi

1. Protection Against Financial Losses
   Given the vast amounts of assets locked in DeFi protocols, any vulnerability can result in massive losses. Audits protect users and protocol operators by identifying flaws in the code that could otherwise be exploited, helping to avoid disastrous financial consequences.
2. Enhanced Protocol Reliability
   Audits ensure the smart contract works as intended without unexpected issues. This reliability is crucial in DeFi, where one error can lead to cascading issues across protocols due to the composability of DeFi projects. A secure, reliable contract minimizes risks for developers and users alike.
3. Building User Trust and Confidence
   Users are more likely to engage with protocols that have undergone thorough security audits. Audits signal that the development team prioritizes security, which is essential for fostering trust in the DeFi community.

How Smart Contract Audits Are Conducted

The audit process generally involves the following steps:

• Initial Analysis
  The auditing team reviews the contract’s documentation, analyzing the intended functionality and identifying key areas that may need more attention.
• Automated Testing
  Auditors use specialized tools to scan the contract’s code for known vulnerabilities, such as reentrancy attacks, overflow errors, or access control issues. Automated testing helps in identifying common flaws quickly.
• Manual Review
  Automated tools can’t detect every issue. Manual reviews are essential to assess complex logic flows and potential edge cases. Auditors go line-by-line, examining each function to ensure there are no hidden vulnerabilities.
• Attack Simulation
  Auditors often simulate potential attack scenarios, testing how the smart contract would respond under stress. This stress testing helps identify how the contract might behave in an unexpected or malicious scenario.
• Reporting and Remediation
  After completing the analysis, auditors provide a detailed report of their findings. The report highlights potential vulnerabilities and offers recommendations for addressing them. The development team then makes adjustments to the code based on these findings, and in many cases, the contract undergoes another audit to verify that all vulnerabilities have been patched.

Common Vulnerabilities in DeFi Smart Contracts

Understanding common vulnerabilities helps illustrate the need for audits. Some frequently encountered issues include:

1. Reentrancy Attacks
   These attacks occur when an external contract repeatedly calls a function before the initial execution is completed, allowing an attacker to drain funds.
2. Integer Overflow/Underflow
   If not properly handled, integer values can exceed their limits and “wrap around” to incorrect values, potentially resulting in unexpected behavior or fund loss.
3. Access Control Issues
   Poorly implemented access controls can allow unauthorized users to access restricted functions, giving attackers the power to manipulate the contract.
4. Flash Loan Exploits
   Flash loans enable rapid borrowing without collateral, and vulnerabilities in contracts can allow attackers to manipulate prices and drain liquidity pools.

Benefits of Smart Contract Audits for the DeFi Ecosystem

1. Increased Adoption and Mainstream Credibility
   Audits make DeFi protocols more appealing to institutional investors and the broader public, fostering greater adoption and mainstream acceptance of decentralized finance.
2. Reduced Exploits and Hacks
   By identifying and addressing vulnerabilities before they are exploited, audits contribute significantly to the safety of the DeFi ecosystem, reducing the frequency and impact of hacks.
3. Improved Protocol Longevity
   Secure protocols stand the test of time, building stable user bases and encouraging innovation. Audits ensure that DeFi protocols are not just viable but also secure for long-term growth.

Limitations of Smart Contract Audits

While audits are highly beneficial, they are not foolproof:

• Complexity of Evolving Code
  DeFi protocols often evolve with new features, increasing the complexity of the code and making audits more challenging. Each new update may require additional audits to maintain security.
• Human Error
  Audits involve manual processes that are subject to human error. A small oversight can lead to vulnerabilities going undetected, which is why using reputable audit firms is critical.
• Limitations of Automation
  Automated tools have limits in detecting novel, complex vulnerabilities. Therefore, audits should combine both automated tools and expert manual reviews.

Final Thoughts

Smart contract audits are vital for the security and success of DeFi protocols. They identify and mitigate potential risks, making protocols safer for users, and contributing to the overall credibility and growth of the DeFi ecosystem. Although they come with limitations, audits remain one of the best defenses against hacks and exploits in the decentralized finance space. As the DeFi sector matures, regular smart contract audits will be essential for fostering a secure and trustworthy ecosystem, making DeFi a viable option for both retail users and institutional investors alike.

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The highly technical nature of DeFi protocols means they are often susceptible to exploits, hacks, and bugs that can result in millions of dollars lost within seconds. In this volatile environment, security audits emerge as an essential safeguard, helping ensure the robustness and reliability of DeFi projects.

What are Security Audits in DeFi?

Security audits are comprehensive reviews of a project’s smart contracts, protocols, and overall architecture. These audits are conducted by independent experts or firms who meticulously examine the code for vulnerabilities, inefficiencies, and potential exploit points. With DeFi protocols being open-source, transparency can be both a strength and a weakness. Malicious actors can easily inspect the code for weaknesses, making thorough audits crucial.

The Role of Security Audits in Preventing Hacks

Despite the decentralized nature of DeFi, security is of utmost importance. Many DeFi projects have suffered from hacks due to bugs or unoptimized code. These hacks not only result in financial losses but also damage the credibility of the entire project. Security audits identify flaws before they are exploited, significantly reducing the risk of hacks.

For instance, the infamous DAO hack on Ethereum in 2016, which led to the hard fork of Ethereum and the creation of Ethereum Classic, occurred due to an overlooked vulnerability. A thorough security audit could have potentially prevented this devastating exploit.

Benefits of Security Audits for DeFi Projects

1. Risk Mitigation
   By identifying vulnerabilities early, audits drastically reduce the risk of loss from potential attacks or code malfunctions.
2. Investor Confidence
    A project that has undergone and passed a security audit demonstrates a commitment to user safety, fostering trust among investors and users.
3. Enhanced Code Quality
    Audits often highlight areas where the code can be optimized for better performance, helping developers improve overall protocol efficiency.
4. Regulatory Compliance
    As regulators increasingly scrutinize the DeFi space, audits can help projects meet emerging regulatory standards, protecting them from legal ramifications.

Case Studies: The Impact of Audits in DeFi

Several notable DeFi projects have successfully avoided catastrophic losses due to preemptive audits:

• Aave
   One of the leading DeFi protocols, Aave regularly undergoes rigorous security audits to protect its users and has successfully maintained its reputation as a secure platform for decentralized lending and borrowing.
• SushiSwap
   After an initial chaotic launch, SushiSwap conducted multiple audits to ensure that its smart contracts were airtight, helping to restore confidence in the project.

Projects like Poly Network faced a significant hack, losing over $600 million, showcasing the severe impact of inadequate security measures in DeFi.

Why Audits Are Only the Beginning

While audits are a critical step in securing DeFi protocols, they should not be considered a silver bullet. The fast-paced nature of DeFi means that code is continuously evolving. Projects should implement additional measures such as bug bounties, decentralized governance, and multi-signature wallets to further enhance security.

Furthermore, audits must be conducted regularly, especially when protocols are updated or new features are introduced. Continuous auditing ensures that new vulnerabilities are caught and resolved before they can be exploited.

In Summary

Security audits play a pivotal role in the DeFi ecosystem by uncovering weaknesses and ensuring the reliability of decentralized protocols. In an environment where millions can be lost to a single vulnerability, the importance of audits cannot be overstated. Projects in the expanding DeFi space gain a competitive edge by focusing on security audits to build trust with investors and users.

Ensuring that protocols are safe and secure is not just a technical responsibility—it’s a cornerstone of the DeFi revolution.

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Smart contracts implemented on blockchains facilitate the disclosure of their inner workings. However, smart contract vulnerabilities may be made public due to blockchains’ emphasis on code transparency. In this way, smart contracts are vulnerable to theft, loss, and damage from hackers and other malevolent users, which could result in financial harm or the loss of valuable customers.

What is a Smart Contract Audit?

A smart contract is a flexible tool that may be used to monitor and confirm monetary transactions as well as track the whereabouts of tangible and intangible goods. Due to their autonomy and the fact that smart contracts can distribute valuable resources between intricate systems, safety and uniformity are paramount.

Therefore, the safety of smart contracts must have an appreciation for the probability and importance of potential contract faults or found errors. To guarantee the safety of funds channeled into a project, it is essential to conduct a thorough audit of the smart contracts involved in that project. In any primer on auditing smart contracts, the term’s definition naturally takes center stage. In addition to enabling and confirming financial transactions, smart contracts can also track the transfer of tangible goods and intangible intellectual property. Smart contracts are tasked with the autonomy and scalability required to allocate high-value resources across complex systems. Because of this, safety and uniformity are crucial conditions for achieving the intended results.

Notable among smart contract security industry standards is the smart contract audit, which is crucial for developing robust protections for smart contracts. Security vulnerabilities in smart contracts, and their potential impact on smart contract functionality, can be uncovered with the use of audits. An audit can aid in a thorough examination of smart contracts for a given application or project, as well as the protection of assets connected to it.

Since transactions on blockchain networks are irreversible, any breach in smart contract security would mean that consumers could not recoup their funds. To find flaws in smart contracts more quickly, auditors would focus on the code that defines their terms and conditions. When flaws in a smart contract are discovered before it is put into production, the associated costs can be reduced or eliminated.

How Do Smart Contract Audits Work?

To an extent, auditing services all follow a similar procedure when inspecting smart contracts. Every auditor has their unique method, but generally speaking, they do the following:

1. Establish the limits of the audit at the outset. Project (their intended purpose) and general architecture determine the smart contract and project specifications. An audit team’s ability to write and use the code effectively is greatly enhanced when they have access to a specification outlining the project’s aims.
2. Give a rough estimate of costs based on the scope of the project.
3. Test it out. Their precise nature differs from audit to audit, analysis tool to analysis tool, and method to method. Manual and automated testing are commonly used together.
4. Make a rough draft of the report containing the mistakes you’ve noticed and send it to the rest of the project team so they can give you comments and suggest any necessary improvements.
5. Release the final report, taking corrective measures into account.

Benefits of Smart Contract Security Audits

Developers’ emphasis on finding auditing tools for smart contracts demonstrates that protecting smart contracts is a top concern. The construction and implementation of smart contracts can incur extra expenses if malicious behavior and inefficiencies are avoided. Even seemingly insignificant mistakes in the code of a smart contract could result in the loss of highly valuable assets.

Consider the following points about the value of a security audit for smart contracts:

1. Auditing smart contract codes early on in the design process could save money by catching mistakes before they have a chance to cause disruptions after the contract has been deployed.
2. To ensure no unintended repercussions arise from a smart contract, security auditors perform a manual inspection of the contract’s code.
3. In smart contract-based decentralized apps, security audits give peace of mind to all asset owners.
4. An in-depth audit of your smart contracts can yield useful analytical findings that include a description of any problems found as well as specifics about how to fix them.
5. Smart contract audits can be used to script and alter code to help prevent security flaws in the contract’s source code.
6. Audits of smart contracts can also help with continuous security evaluations, which is great for enhancing the overall development atmosphere.

Smart Contract Audits Methods

Auditing services for smart contracts look for security flaws in the underlying business logic of each contract. Auditing the safety of smart contracts is done to varying standards depending on the specifics of each venture. As will be seen below, auditing smart contracts can be done either manually or automatically.

🔹Manual Smart Contract Audits

As the name suggests, manual audits necessitate the time and effort of trained auditors or subject matter experts to examine the smart contract’s source code. Re-entry and compilation errors are the principal targets of manual audits. Manual audits can also assist spot critical smart contract security vulnerabilities, such as ineffective encryption, that are often overlooked. As it can detect both design flaws and coding mistakes, it is one of the most thorough and reliable methods for auditing smart contracts.

There are two main ways to conduct a manual audit of a smart contract’s source code. Manual auditing would allow auditors to confirm if the code contains the usual suspects for failure. However, developers could independently investigate the code based on their expertise.

🔹Automated Smart Contract Audits

Worries about human mistakes may reduce the effectiveness of currently recommended approaches to auditing smart contracts manually. As a result, automated smart contract audits can be more effective in revealing vulnerabilities and faults in smart contract security. To pinpoint the origin of problems, automated audits use bug detection tools.

Automated smart contract audits can be useful for projects that require a quicker time-to-market by speeding up the process of identifying vulnerabilities. Nevertheless, automated audits can miss vulnerabilities due to a lack of context awareness.

Bottom Line

The significance of smart contract auditing to the development of blockchain and cryptocurrencies was highlighted in the introductory guide. When it comes to facilitating transactions, smart contracts are used by the vast majority of dapps in the blockchain ecosystem. However, because of the blockchain’s public nature, bad actors can easily find weaknesses in smart contracts.

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TL;DR:

• No security vulnerabilities were found in Archimedes protocol
• No non-security major issues were found with the code
• They continue our partnership with Halborn to periodically review our developing code base, both smart contract and front end
• Read the full report here.

Archimedes believe that only when great software meets great ideas a truly great product is born. That’s why they have smart engineers from across the board — from startup world veterans to corporate alumni and anywhere in between. They also invest in the best tools to develop and test every step of the way (including a costly dry run on mainnet to test in “the real world”). That’s why they develop in public. That’s why they partnered up with one of the best auditing firms in the world, Halborn, to audit their smart contracts.

Halborn’s Audit of Archimedes smart contracts

They are proud to publish the final report of Halborn’s Audit of Archimedes smart contracts. No security vulnerabilities were found in Archimedes protocol. No non-security major issues were found with the code.

The audit included two independent in depth analyses of the code by two solidity experts at Halborn. They went through every piece of code they have — testing it and making sure it fits with what we promise their users. If some lines of code did not make sense, they jumped on a call with the engineers at Archimes that wrote that code. As mentioned before, those were solidity experts with years of best practices experience under their belt, which they lent to them and helped level up their solidity game. The Audit also included running Archimedes code through various automated tools to find possible vulnerabilities.

Minor findings on the report were either fixed or acknowledged with the understanding that those recommendations will be applied to future refactoring of Archimedes smart contracts codebase, with no impact to users.

Archimedes is keeping its commitment to building well designed and well tested software:

• They continue its partnership with Halborn to periodically review their developing code base.
• Halborn is currently working on a front end audit.
• They’ll continue to test their existing product in controlled environments.
• They are preparing a bug bounty program with Immunefi, which they will soon announce.

Most importantly, each one of them at Archimedes continued to develop and hone our skills to better earn the trust of you G(r)eeks, their user.

About Archimedes

Archimedes is an experimental lending and borrowing platform. They build it on top of AMMs such as Curve.

Website | Twitter

About Halborn

Halborn was founded in 2019 by renowned ethical hacker Steven Walbroehl and growth hacker Rob Behnke. The fully remote organization has since grown to over 50 of the best. And brightest offensive security engineers in the world.

Their team is 100% remote, diverse, and based in New York, Miami, Spain, Peru, Turkey, Hungary, India, Poland, France, and many more.

Website | Twitter

SOURCE: MEDIUM

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The independent examination, conducted by SlowMist, the leading international blockchain security auditing firm, validates that Bitizen wallet’s MPC-technology, software architecture, security practices and controls meet requirements for wallet’s digital asset security, availability, and also user data privacy.

“By applying for a security audit led by our experts and providing us with a full source code and documentation, Bitizen demonstrates their commitment to protecting users’ digital assets and privacy, as well as providing public verification of the wallet’s safety. The Bitizen team has also shown high responsibility, security awareness, and professional attitude.

During the auditing process, we conducted in-depth blackbox, graybox and white box analysis, and we were deeply impressed by the Bitizen’s excellent security design and exceptional engineering capabilities.

We have not found any critical or high-risk vulnerabilities in Bitizen Wallet; also, we commend Bitizen wallet for implementing both cryptographic MPC technology and 3FA solution and delivering a strong project to the market.” — SlowMist Security Team Tech Lead

Read Executive Summary and check full report here.

“By using Bitizen wallet, which implements Secure MPC technology and completely removes private keys and seed phrases, our users put their confidence in the most secure cryptographic technology available on the market”, said Winson Liu, CEO of Bitizen Wallet.

“We are proud to pass the audit by SlowMist, one of the most prominent blockchain security firms. Being a non-custodial wallet, we respect our users’ rights to have the full ownership of their funds. We assure all our users that we take digital assets security, user funds availability — often called “censorship-resistance”, and also personal privacy-safety as the top priorities. This is what makes Bitizen unique from any other wallets.”

About SlowMist

Established in January 2018, SlowMist is a reputable global blockchain security company. SlowMist’s audits cover penetration testing topics in greater depth and detail than other services.

Through a combination of black box and gray box security audits, SlowMist is able to discover vulnerabilities and propose solutions to the clients, as well as make suggestions for improving security, and provide with the best security practices to prevent possible security risks in the future.

The security audit by SlowMist provides a more comprehensive practical basis for the construction of the enterprise security system and issues a professional Security Audit Reports.

Website | Twitter

About Bitizen Wallet

Bitizen is a new generation MPC-based Web3 wallet with no private keys and no seed phrases, designed for the new wave of Web2. They provide the highest level of security while staying simple and easy to use.

Bitizen has implemented top-notch cryptographic Secure MPC protocols that efficiently remove single points of failure present in all traditional wallets — private keys and seed phrases. Other notable features are full privacy-safety, censorship-resistance and multi-chain compatibility.

Website | Twitter

SOURCE: MEDIUM

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Project Overview

The project is an extensible framework for building Ethereum-compatible blockchain network, supporting Ethereum smart contracts and transactions, as well as asset conversion between multiple blockchain networks; the network implements the IBFT-PoS consensus mechanism to govern the entire project on a basis of token governance.

• Audit work duration: April 21, 2022 — Jun 15, 2022
• Audit methods: Formal Verification, Static Analysis, Typical Case Testing and Manual Review.
• Audit team: Beosin Technology Co. Ltd.

Audit Results

After auditing, 1 High risk, 3 Low risks and 2 Info items were identified in the Doge Chain project. The final audit results are available in the audit report.

View the report: https://beosin.com/audits/Doge%20Chain_202206151650.pdf

Audit Workflow

Beosin has conducted a comprehensive audit of the project, including basic modules such as JSON RPC interface, network nodes, transaction logic, transaction pools, virtual machines and consensus mechanisms, as well as the project’s Ethereum-compatibility, cross-chain asset security, system contract implementation and other unique features. The auditing workflow is mainly as follows:

I – Conduct preliminary source code review;

II – Use Beosin’s self-developed automatic smart contract formal verification platform — VaaS to conduct an in-depth detection of the contract codes in all aspects;

III – Practical deployment and validation via sandbox simulation;

IV – Manual line-by-line code review by security experts;

V – Complete the final audit report.

About Doge Chain

Dogechain is a new blockchain that is entirely built and designed to be completely community guided and owned. Dogechain superpowers Doge to bring crypto applications like NFTs, games, and DeFi to the Doge community.

WEBSITE | TWITTER

About Beosin

Beosin is a leading global Web 3.0 blockchain security brand co-founded by several professors from world-renowned universities. The team consists of 100+ security experts, including 40+ PhDs and postdocs.

With the mission of “Securing Web3.0 blockchain ecosystem”, Beosin provides integrated blockchain security services and products to serve 1 million+ users in the global blockchain ecosystem.

WEBSITE | TWITTER

SOURCE: MEDIUM

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With this audit and KYC, ChainPerk reaffirms its commitment to ensuring security and transparency for investors.

In fact, CertiK is a pioneer in crypto asset security, utilizing best-in-class AI technology to secure and monitor security protocols. Being audited by CertiK will ensure that $PERK is free of vulnerabilities. 🔐

In addition, The ChainPerk team worked closely with CertiK experts to ensure the project passed advanced security audits. In addition, the core team has been KYC-ed in the process as well!

About ChainPerk

ChainPerk is a trip guidance platform that helps you find all kinds of fun experiences. ChainPerk supports all restaurants, bars, clubs, museums, cinemas, amusement parks, casinos, and many other experiences all over the world!

Its mission is to guide people to have remarkable experiences around the world.

In addition, they seek to lead in enriching the lives of both consumers and business owners. By creating a community driven by real reviews.

WEBSITE | TWITTER

About CertiK

CertiK is an edge-standards cybersecurity firm founded by Computer Science professors hailing from Yale and Columbia University respectively. They aim to improve the security and correctness of smart contracts and blockchain protocols on a global scale.

Leveraging a seasoned team of multi-skilled engineers and security auditors, CertiK’s mission is to apply a plethora of high-level industry practices, covering the entire spectrum of static, manual, and dynamic analyses, in order to ensure each project subject to a formal audit is up-to-date with modern security standards while offering their services to the broader DLT community.

Over the past few years, CertiK has serviced more than 100 top-shelf blockchains, DeFi protocols, among other complex and/or custom smart contracts, including but not limited to Binance, Tera, Bancor, Shapeshift, and Blockstack.

WEBSITE | TWITTER

SOURCE: MEDIUM

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Audit Results

After auditing, 4 Low-risk and 2 Info items were identified in the NFTAQ721 project. No Critical, High or Medium risk issues were found during the auditing process. The final audit results are available in the audit report.

Audit Workflow

Beosin has focused on the core security issues such as contract permission control, execution of business logic, and signature data replay during the audit process. The auditing workflow is mainly as follows:

1. Conduct preliminary source code review;
2. Use Beosin’s self-developed automatic smart contract formal verification platform — VaaS to conduct an in-depth detection of the contract codes in all aspects;
3. Practical deployment and validation via sandbox simulation;
4. Manual line-by-line code review by security experts;
5. Complete the final audit report.

About Alpha Quark

Alpha Quark deals with intellectual property based NFT and metaverse. Alpha Quark provides NFT marketplace and metaverse experience for users. So that Alpha Quark token can be used as utility token in the ecosystem.

The NFTAQ721 of Alpha Quark is a lending platform where users can pledge their NFTs to borrow BEP20 tokens. The signatures of both lender and borrower are required at the beginning of the loan. And the NFT pledged in the loan and the BEP20 of the loan need to be whitelisted by the NFTaq contract. After the verification is passed, the borrower’s NFT is pledged to the NFTaq contract, and the lender’s BEP20 is transferred to the borrower.

The NFTaq contract will mint the NFTAQ721 for the lender, and then the lender can transfer NFTAQ721 to other users to realize the creditor’s rights transfer. When the loan is not liquidated, the borrower needs to redeem the pledged NFT with the principal and interest of the corresponding BEP20 token. If the loan is not repaid beyond the loan period, everyone can liquidate the loan, transfer the NFT pledged in the contract to the owner of the NFTAQ721, and burn the NFTAQ721.

Website | Twitter

About Beosin

Beosin is a leading global Web 3.0 blockchain security brand co-founded by several professors from world-renowned universities. The team consists of 100+ security experts, including 40+ PhDs and postdocs. With the mission of “Securing Web3.0 blockchain ecosystem”, Beosin provides integrated blockchain security services and products to serve 1 million+ users in the global blockchain ecosystem.

Website | Twitter

SOURCE:

MEDIUM

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