The DeFi marketing has rapidly grown into one of the most well-funded in the world. As an alternative form of investment, individual investors around the world have turned to the world of decentralized finance as a way of expanding their portfolios. With the ability to diversify, combined with the impressive returns this industry has seen over the years, it’s no surprise that the DeFi market is now worth over 45 billion USD.
Even in this period of crypto downturn, the sheer quantity of locked-in funds within the DeFi system demonstrates the public support for cryptocurrency and blockchain technologies. Yet, as there is so much capital in this system, it’s also been one that’s routinely been focused on by attackers.
It seems like the world of DeFi can’t go a week without some new critical event popping up, with hackers targeting DeFi exchanges and DApps and exploiting their systems. Over time, this has led to this space being seen as unsafe, and potentially dangerous to invest in.
In this article, we’ll be turning to this history, documenting why there’s a certain lack of safety in the world of DeFi and demonstrating how Zonda – a DeFi exchange – is set to turn the tides on this unfortunate history.
Let’s get right into it.
Lack of Safety in DeFi Platforms
In 2022 alone, nearly 2.5 billion USD has been siphoned off from DeFi by attackers. This figure comes from over 135 exploits that have been documented so far in 2022, a number that’s over 50% higher than the whole of 2021. As this industry continues to thrive, more and more attackers take notice and turn their attention to DeFi systems.
From finding and using private keys to exploiting blockchain bridges to mint and steal user funds, DeFi hackers have become a core part of the blockchain news cycle. There is a range of reasons that DeFi platforms continually seem to suffer from these attacks:
- Increased Adoption – With the sheer number of people that are flocking to decentralized finance systems, it’s no wonder that with the additional strain on the ecosystems, the cracks are starting to show. The increase in hacks is, more or less, in line with the boost in total usage across the entire DeFi system.
- Code Exploits – Whether it’s from using open source code duplication to rapidly create rug pull projects or accidentally leaving vulnerabilities in the code, DeFi projects seem to continually fall prey to attacks.
- Blockchain’s Interoperability – As the complexity of blockchain continues to grow, with new projects springing up all the time, the need for interoperability has only increased. Interoperability refers to the ability of different chains or projects to interact. At these points of interaction, smart contracts are in place to ensure communication and exchange are correctly facilitated. Yet, these points also prove as weak spots, leading to many exploits in DeFi systems.
- Failure to Provide Security Audits – Finally, we turn to a simple lack of smart contract audits. Across the top 10 largest DeFi hacks of 2021 and 2022, 9 out of 10 never had a security audit. This oversight was the downfall of their projects, with attackers able to find and exploit vulnerabilities.
Across these core areas, many DeFi platforms have fallen prey to attackers. Without a movement to remedy these areas, the history of DeFi encountering scams and hackers will continue to remain prevalent.
How Does Zonda Push the Bounds on DeFi Safety?
Since its conception in 2014, Zonda has forged itself into a leading DeFi exchange platform, facilitating nearly 200,000 daily transactions with over 1 million registered users. At its core, the platform is a cryptocurrency exchange platform, allowing users to buy, sell, and trade their favorite cryptos against a range of fiat currencies.
Yet, what marks this platform as unique and apart from its competitors is the hyperfocus it places on security. Even back in 2014, this company always took the most financially secure route possible. Instead of starting their project and seeking financial regulation afterward, they began to seek regulations and licenses right from the beginning.
As of 2022, Zonda holds an Estonian FIU License, granting it the ability to operate in a secure environment across the whole of Europe. It also has the Canadian FINTRAC license, providing overseas support to its users.
The very center of this project being based within security has also led to international recognition. Zonda has received a variety of cryptocurrency exchange awards, notably for its devotion to creating a safe and secure environment.
Just a small selection of the awards this DeFi exchange has received include:
- Invest Cuffs 2019 Best Blockchain Exchange of the Year
- Berlin Summit 2018 Best Cryptocurrency Exchange
- Cryptocurrency World Expo Best Cryptocurrency Exchange
That’s not even to mention the anti-money laundering procedures that Zonda includes within its platform. Due to its rigorous display of security features, this platform is yet to experience a hack or exploit.
With this litany of awards and clear devotion to security, it’s no wonder that Zonda is receiving such international support.
Putting the User First
At every step of the customer journey, Zonda has created a way of involving secure practices, ensuring that all investor funds and user accounts are protected at all times. Unlike other cryptocurrency exchange platforms, this DeFi system has a range of original security solutions that contribute to a safe environment.
When signing up for an account, users are instantly advised on the best practices that they should follow. Zonda recommends that users:
- Have Strong Passwords – Zonda outlines a range of guidelines that demonstrate the best password practices, both for the user’s crypto wallet but also for all of their connected accounts.
- Use MFA – Multi-factor authentication allows users to log on to their platform only when they have access to two forms of authentication. This means that hackers wouldn’t be able to access a user account, even if they were able to phish the user’s password.
- Turn Confirmations On – Confirmations are notifications that go directly to the user’s phone or email account whenever there is activity on the account. With this in place, users know absolutely every movement that happens on their account and can spring into action if they see something unexpected.
Zonda also includes a transfer authorization scheme. That means that whenever you deposit or withdraw funds into this DeFi system, a Zonda employee double checks the transfer is correct. This is to prevent any duplication or exploits from occurring, with many notable DeFi exploits occurring when attackers manage to manipulate funds at the withdrawal or deposit stage.
Additionally, Zonda stores all cryptocurrency funds on cold wallets. That means that these funds aren’t directly connected to the exchange’s servers. Even if an incident were to occur, which is already very unlikely, hackers wouldn’t have access to user funds as they are not accessible from the platform. No third party has access to user funds, creating a water-tight protection system.
Education as a Factor of Security Prevention
Beyond on-platform safety features, Zonda has demonstrated its commitment to security by creating a whole Zonda Academy for users to experience. One of the leading reasons for security exploits in any industry is due to human mistakes. From giving out a password on a phishing email to accidentally using a weak password or committing an error, human mistakes can lead to huge issues.
Within the Zonda Academy, users are able to work through a range of different courses. Some of these are directly related to cryptocurrency and trading, while others are about safety and how to exist within a DeFi space without creating risk.
By supplying these courses to their users, free of charge, anyone that enters into the Zonda ecosystem can get a world-class education about crypto safety. By educating users on the best practices, Zonda further decreases the chance of any exploits or hacks occurring, as their users also embody a high level of security knowledge.
Over time, as Zonda releases more security courses, the knowledge and understanding of their audience will only improve. With this, Zonda will be a secure platform inside and out.
Final Thoughts on Zonda
If you’re looking for a secure DeFi platform where you can actively trade cryptocurrency in a safe environment, then Zonda is the solution for you. The DeFi system has routinely exposed itself to errors and exploits that have led to hackers using vulnerabilities within its ecosystem to steal money.
With this history in mind, Zonda has actively fought back against these areas of exploitation, focusing on crafting a system that tackles security from every angle. Including world-class security defense mechanisms, while also training their users in secure trading practices, Zonda is committed to a better online DeFi space.
So, is Zonda secure? Out of the available DeFi systems, it’s definitely the one that’s closest to complete 360-degree coverage.