EasyFi, a universal layer two lending protocol, has announced the reinstatement of its protocol in response to the security incident in which the platform lost over $80 million in funds. From security audits to insurance and a new roadmap to product launches, EasyFi plans to restore the network from the ground up.
Background
EasyFi is a DeFi lending protocol designed for cryptocurrencies powered by Polygon. In an April 20 blog post, Ankitt Gaur, CEO of the project, detailed an attack that resulted in the loss of 2.98 million $EASY tokens, which were worth apiece at the time of the hack, totaling over $75 million. Additionally, the hacker removed $6 million from liquidity pools in DAI, Tether, and USD. The incursion, which occurred on April 19, was a targeted attack compromising the MetaMask wallet of the admin and mnemonic keys.
Lately, the EasyFi team shared an interim compensation plan for lenders/depositors who lost their funds in the hack. As per the plan, the team will compensate 100% net balance deposited in protocol contracts on the Polygon network while it continues its search operation. Though it’s working with the team of experts to gain insights into the hack, the security incident was a lesson for EasyFi that it needs to tighten all loose ends.
After hardforking EASY tokens and initiating EASY V2 tokenswaps, it becomes even more essential for the platform to secure its network from future attacks. Let’s see what the team has in place!
Reinstatement Plan – BulletProofing the EasyFi Protocol
As per the article shared by the team, the platform intends to secure the platform and its services using security audits and insurance covers.
- In the decentralized finance market, security audits are essential to ensure a protocol is free from possible errors or loopholes. EasyFi plans to partner with top audit companies to audit its protocol’s smart contract code and incorporate new security practices for better security of its ecosystem. Additionally, it shall partner with companies with bug bounty programs for anyone to evaluate EasyFi’s code.
- Since most DeFi protocols and their smart contracts rely on code and smart contracts, users get exposed to a new type of risk that isn’t in the traditional finance world. With the recent hack and its valuable lessons, EasyFi no longer wants to expose its community to an uncertain market event. Therefore, the EasyFi team has plans to partner with insurance providers to mitigate the risks and infuse extra security and confidence in EasyFi protocol. This additional layer on the platform will help protect the users’ engagement and collateral positions into EasyFi’s contracts. As a part of the plan, the team will offer insurance against its protocol and positional liquidations.
In addition to security audits and insurance covers, EasyFi is relaunching its primary protocol and putting in extra efforts to ensure the community feels comfortable using its platform.
Doing all EasyFi can to Rising Again – Stronger and Faster
After the team has partnered for security audits and insurance covers, it will launch EasyFi’s protocol on Binance Smart Chain (BSC) and Polygon again. Meanwhile, as soon as protocol sections comply with requisite security practices and go through necessary auditing, the team will open them for utilization.
Additionally, the team has plans to develop several yield farming and liquidity sourcing protocols for EZ token holders and EasyFi users on all three networks – BSC, Polygon, and Ethereum.
Furthermore, EasyFi will launch the anticipated collateral options, like tokenized stocks and staked derivatives, which will open up new options of liquidity for the community members. The team recently revealed its partnership with Clover to offer collateral options and dedicated money markets to the crypto ecosystem.
Lastly, the team will introduce new upgrades to the UI/UX of the EasyFi application shortly. In addition to the new products and a roadmap, brand new access programs will be introduced to bring more opportunities for EZ & EZ IOU holders to get allocations in upcoming promising projects.
This article was first published on coinquora.com