Security is a challenge for DeFi protocols. These decentralized finance platforms are often considered soft targets in the crypto Wild Wild West. And there have been more than a handful of exploits to confirm that.
While every DeFi project seeks to weather the whirlwinds of exploits, some do a better job than others. Since Alphr offers decentralized trading, it has to be right at the top of the pack.
Potential Security Challenges
For Alphr, the major challenge is navigating the murky waters of security. From afar, the decentralized trading opportunity, made available through mirror pools, might not have alarm bells going off. Yet, the security threats to the De-Fi protocol are alive — a loophole is all that’s needed.
Alphr’s promise of a decentralized mirror trading — that provides professional insight for the average Joe — comes at a steep price. The protocol uses a mirror pool for automated trading, so users can trade assets without worries about missing out or gas fee struggles.
Attacks on DeFi protocols often target liquidity pools and the Alphr mirror pool is one of such. Since most user assets are combined in this mirror pool and traded based on the demands of the Alphr user, such sizable liquidity is bound to attract attention.
How Alphr Stays Safe
Every DeFi protocol has its approach based on its peculiarities towards keeping the barricades up against attacks. Some have audits done on their codes to confirm everything is perfect. Bug bounties are also commonplace as they reward users for finding the chink in the Protocol’s amour.
Alphr has gone about protecting its ecosystem from exploits in several ways. Not so long ago, the DeFi protocol organized a bug bounty that got many community members and beyond to find loopholes in the protocol’s codes.
The bug bounty isn’t the only way funds remain safe on Alphr; its partnership with Union Finance holds more answers.
Alphr Protocol is fully aware of the vulnerabilities of the decentralized finance space. The project’s partnership with Union Finance will shield Alphr users from the harsh realities of DeFi.
The Union Finance Partnership Angle
To ensure users don’t bear the brunt of an unexpected exploit or hack of its mirror pool, Alphr teamed up with Union Finance, an insurance policy provider for De-Fi protocols.
Through this collaboration with Union Finance, Alphr users worry less about the safety of their assets in the mirror pool. The integrated protection from Union Finance covers all user funds in the Alphr mirror pools.
By partnering with Union Finance, Alphr stays one step ahead of attackers, regardless of the slippery nature of the De-Fi space. Also, this collaboration is an indication of the Alphr team’s foresight, which should serve the protocol and its users in the coming days.
Interestingly, the Union Finance protection is optional. Users have to decide if they want to protect their assets or not. While you’d expect this to be mandatory — considering the brutally tough De-Fi space — Alphr gives room for users to decide for themselves.
Alphr’s partnership with Union Finance doesn’t include funding of the insurance coverage for its mirror pool. The collaboration only makes protection a viable option for users. While this might not go down well with many, users should not expect Alphr to fund insurance coverage for them it’s a capital-intensive service.
Funds are safu on Alphr. You can mirror trade using insights from the best DEX traders without losing sleep over the safety of your assets. Just remember to utilize the Union Finance — Alphr collaboration and secure your assets.