Lossless, the first decentralized finance (DeFi) hack mitigation tool for token creators, has launched its Core Protocol on the Ethereum mainnet. Read on to find out why it is crucial for the entire crypto space and change security altogether.

Crypto hacks

During the first quarter of 2022, $1.23 billion was stolen or hacked in the entire crypto ecosystem. That is almost a 700% increase from $154 million in losses during the first quarter of 2021.

Hacks are accelerating. One key reason is the incredible pace of development in the ecosystem: Protocols are launching within weeks, and this pace of deployment has a tremendous downside with code not always properly audited and smart contracts launched with bugs. This situation requires a solution — it is critical for the world of crypto to have an effective hack prevention and mitigation tool.


New types of bugs will arise with newly invented products and features, so constant development is inevitable. Preventing all hacks from happening in the first place is difficult, but aiming to minimize them and their impact as much as possible is the goal.

A clever solution that achieves a safe crypto world for all is to use a hack mitigation tool. When a hack occurs, the tool could freeze the transaction for it to be reviewed, and when it turns out to be a hack, the transaction could be reverted back to the owner.

Lossless Core Protocol allows exactly that. It is a critical piece of infrastructure for crypto. Other protocols can implement a piece of Lossless code into their token smart contracts to seek hack-mitigation capabilities. 

Lossless community white-hat hackers and developers can build bots that scan all transactions for these connected cryptocurrencies. When a bot spots a potentially fraudulent transaction, it can be frozen midway before reaching the exploiter.

The bot owner needs to commit 2,500 LSS tokens to generate a hack report. This staking method ensures that only fraudulent transactions are frozen. The Lossless community can also stake a fixed amount of 200 LSS tokens on top of the report if they believe a transaction is indeed fraudulent, earning staking rewards contingent on their speed and the amount retrieved from the hack.

The hack report triggers an investigation by the decision-making body, which is made up of token creators, Lossless team experts and a security committee of crypto industry professionals. This structure determines whether the transaction is fraudulent or not.

When the bot turns out to be right, and the report is about an actual hack, then hack finders, community members that staked Lossless tokens and the decision-making body are rewarded. When the transaction is not fraudulent, it’s unfrozen and goes to the intended recipient.

Any community member can build a bot to use for hack spotting. This stirs up inventiveness in the community and makes people come up with effective algorithms and strategies to identify hacks and malicious activity on the blockchain. 

The launch of the mainnet

Lossless has launched Core Protocol, allowing tokenholder users to take charge of their token security. It was launched first on Ethereum’s mainnet. During the next few weeks, it will be adapted so it can be launched on the BNB Smart Chain, Polygon, Harmony, Avalanche and Fantom blockchains.

The Lossless hack prevention and mitigation tool will be a crucial element for lowering the funds stolen in crypto. It will create an environment of trust that the blockchain ecosystem needs to get to the next phase of mainstream adoption, as the team’s vision ensures a trustworthy and safe DeFi ecosystem, with minimal to no losses from hacks, exploits or social engineering.

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