A DeFi lending protocol for digital assets, EasyFi announced a plan to reinstate its protocol, with an aim to restore users’ confidence after the recent security incident wherein the platform lost over $6 million in users’ funds. The plan includes security audits, best security practices, insurance covers, in addition to new updates to bulletproof the EasyFi ecosystem.
Mise-en-scène of the Initiative
Deployed on Polygon, Ethereum, and Binance Smart Chain (BSC) network, EasyFi is a layer two lending protocol that focuses on offering scalability, composability, and mass adoption for users. Recently, an unknown hacker targeted the MetaMask wallet of the EasyFi admin and stole the mnemonic keys. The security incident resulted in the loss of 2.98 million EasyFi’s native EASY tokens and around $6 million from liquidity pools. The platform not only lost over $80 million but also its credibility among the community members.
On May 8, the company announced to compensate the 100% net balance of depositors and lenders who lost their funds in the attack while it continues to hunt malicious actors responsible for the incident. The announcement is a huge relief to users and would play a pivotal role in building back the trust. But, that’s certainly not enough in the world of decentralization. The DeFi community demands a full-proof solution. To ensure its users are well protected from any unforeseen events, the EasyFi team has shared a reinstatement plan which will tidy up its ecosystem.
The Race Towards Impenetrable Protocol
The company has shared two ways by which it intends to secure its platform and re-instill confidence in its ecosystem.
First, the EasyFi team will partner with companies that specialize in security audits. The plan is to get the EasyFi protocol audited by professionals to ensure no room for errors. Additionally, the audit company will evaluate the security practices implemented by EasyFi, which will further strengthen its architecture. The platform also intends to collaborate with companies that offer bug bounty programs in exchange for finding loopholes in EasyFi’s protocol or smart contract.
Second, the EasyFi team proposes to add an additional security layer over the platform in the form of insurance covers. As a part of the plan, EasyFi will enter into a strategic partnership with insurance providers who can protect its users against smart contract failure and any uncertain market event. This will infuse extra security and confidence around its whole ecosystem by offering protection against a vulnerable contract and positional liquidations.
What’s More for the EasyFi Community?
With the recent hard-fork of EASY tokens, initiation of EASY V2 tokenswaps, and the ongoing investigation, this reinstatement makes much more sense. But, there is a lot more for the EasyFi community, including new UI/UX design, more incentives, the relaunch of protocol, and soon-to-be-built, advanced collateral options.
- Main Protocol Launch: Once the EasyFi protocol has undergone a full security audit, the team will launch the protocol for public use on Binance Smart Chain and Polygon again. However, up until that, the platform will open up the protocol sections which comply with the requisite security practices.
- Community Rewards and Liquidity Procurement: As soon as the main protocol is relaunched, the EasyFi team will roll out new farming and liquidity sourcing programs to incentivize EZ token holders and the protocol users on its blockchain networks, which includes BSC, Ethereum, and Polygon.
- Create More Options for Liquidity: EasyFi also has plans to launch new and innovative collateral options, which may include tokenized stocks or stake derivatives on the protocol. The goal is to provide its community with more liquidity options. The platform has already partnered with various projects to offer an array of innovative collateral options to layer to money markets.
Furthermore, EasyFi will shortly reveal some more updates on the platform. It involves launching new access programs for EZ & EZ IOU holders to secure a place in future projects. The team will also create a new roadmap, introduce new products, and change the UI/UX design of the EasyFi application.
