All of Lossless Products Explained
Even though our hack mitigation protocol is the core product of Lossless, we have launched more than just that and are already building additional tools to ensure security in web3. Allow us to explain what each does or will do, starting from the products that are live.
It’s the industry’s first framework for active exploit mitigation. Lossless platform facilitates manual and automatic community-driven monitoring of suspicious on-chain activity. Malicious token transactions are frozen after being flagged and are subject to further investigation.
Our code detects fraud, freezes, and returns stolen funds. Token creators insert Lossless Protocol into their token’s smart contracts to mitigate the losses suffered from exploits & hacks:
- Urgent freezing — Lossless Smart Contracts allow hack-spotting bots to detect and freeze fraudulent transactions, securing rewards for the bot’s creator.
- Fraud analysis — The Decision-Making Body overviews frozen transactions, validates fraud, and makes a decision to freeze the receiving address permanently.
- Returning stolen funds — The Decision-Making Body enacts a proposal for transaction reversal, and the code reverts stolen funds back to the owner’s address.
This is an advanced security tool for project owners. Vault Protection provides an additional layer of protection to treasury wallets and liquidity pools through whitelisting and withdrawal limiting strategies.
Whitelisting is a common practice in the crypto ecosystem. It’s a system of wallets that have access to a specified area or function. Whitelisting will allow project owners to mark certain addresses as beneficiaries while every other address would be denied any form of interaction by default.
It means our LVP tool will restrict a contract address or treasury only to send transactions to a predetermined set of wallet addresses. This would be also applicable when projects decide to predetermine a set of wallet addresses (such as vesting contracts) to participate in forthcoming coin distributions.
Withdrawal limiting is a pretty basic concept introducing amount (value) and time limits on protected wallets. If used without the whitelisting function, it permits anyone to interact with the contract or the protected wallets but freezes transactions when they surpass a certain value of transferred tokens over a specified time (eg. 100,000 tokens in 50 blocks).
As simple as this solution sounds, it adds second-factor protection if anyone wants to drain a protected wallet quickly.
The minter is a Lossless-wrapped ERC-20 token generator. Project owners can easily mint their own Lossless-protected tokens on Ethereum, BNB Chain, Polygon, Avalanche, Fantom, and Harmony — our six supported chains. No development experience is required.
Minting your cryptocurrency on our minter is free of charge and you also get a heavily discounted auditing service and report by our partners Hacken. You can mint burnable and mintable tokens as well.
Check out the video explainer to learn how both our Token Minter and Vault Protection work:
Let’s move on to two tools that are currently being developed — Security Oracle and Token Relaunch Toolkit.
The Security Oracle will be an additional way to secure your protocol. Oracles in general are a 3rd party service enabling blockchain smart contracts to access real-world data. The Lossless Security Oracle will identify risky, suspicious wallet addresses which are potentially initiating a hack or exploit in order to prevent the attack. That information will become accessible for protocols that will activate our oracle for higher security.
In short, DeFi protocols will be granted access to a new source of information regarding high-risk wallets attempting to initiate malicious actions with their products and services and prevent them from moving forward in the first place.
If oracles are new to you here’s our introduction to what they are.
The Security Oracle’s first version will offer features shown in the visual below. With more updates, more features will be developed and applied.
Token Relaunch Toolkit
This product is aimed at tokens that are already established in the market but would like an easier relaunch process in order to apply the Lossless protocol to their token’s smart contract. Up until now, our protocol was mostly offered to projects which were about to launch but soon we will be able to offer this opportunity to existing projects in web3 too. Here are the steps how the relaunch will look like:
- Step 1. Indicate the token that you want to relaunch
Here you have to indicate the token’s that you want to relaunch contract address, and additionally the block number. The block number is required for the Toolkit to calculate balances up to the specified block number or get the balances before the X block.
- Step 2. Processing
This step basically, takes all of the user data and makes the snapshot of the given token address. Snapshot is calculated from the contract creation block up to the user's indicated block.
- Step 3. Snapshot Review
Here you can review all of the fetched token holders, and see their balances, addresses, and address types. You can sort the data by address, balances, and address type. Additionally, you can search through the data, remove addresses from a snapshot, trim low balances, and remove contract addresses. You will also be able to download the generated data in JSON file format or CSV (coming soon). These balances and addresses will be the ones who will receive the new tokens.
- Step 4. New Token information
In this step, you will have to indicate the token that you want to distribute (relaunch) to the holders. We check the balance of your account to make sure you have enough tokens to distribute, check if it’s a LERC20 token, and prepare the transactions.
- Step 5. Transactions
Here you will see how many transactions you have to process, and also how many failed. Your wallet will be prompted to confirm the transactions. In addition, if by a chance you have rejected the transaction, or didn’t have enough tokens to distribute, you will be able to retry the process.
- Step 6. Airdrop complete
That’s it! The new tokens are distributed. Now you will either remove liquidity from the old token or rename it. The rest is up to you.
Here’s a summary:
Restoring trust in web3 security. Lossless incorporates a new layer of blockchain transaction security, protecting projects and their communities from malicious exploits and the associated financial loss.
Lossless protocol implements an additional layer of blockchain transaction security for ERC-20 standard tokens, mitigating the financial impact of smart contract exploits and private key theft. Lossless protocol utilizes community-driven threat identification tools and a unique stake-based reporting system to identify suspicious transactions, providing real-time protection.