SECURITY WATCH: HOW MERLIN LAB STAYS AFLOAT
Decentralized finance might be everything we dreamt about, but there’s a sinister side to these financial hubs. To the crypto herd, De-Fi is the key to all their desires. Sadly, it’s a bitter-sweet situation.
These disruptors of the financial system are like banks without firewalls and bullion vans. To the attackers in the crypto space, De-Fi protocols are considered sitting ducks, just there waiting for an attacker to put them out of their misery.
This shouldn’t be the case, but the frequent exploits and hacks tell a different story. Smart contracts might be such an innovative feature, but they aren’t perfect no matter who designed them.
PUTTING MERLIN’S SECURITY UNTDER THE MICROSCOPE
With De-Fi protocols dropping left, right, and center across the BSC network due to exploits and other attacks, Merlin Lab has defined its security strategy. One of the interesting aspects of the strategy is the choice of a fair LP price setup.
The reason for the LP price modulation isn’t farfetched. Flash loan exploits form the bulk of these attacks, so it’s normal for Merlin to be taking the initiative in preventing their platform go do from whatever is in the air.
MERLIN STRATEGIC PLANS AND PARTNERSHIPS
To actualize the fair LP price model, Merlin has taken to the well-known Chainlink, which is a decentralized price oracle that’s well-known for ensuring asset price isn’t pulled from just one source.
The fair LP price protects the Merlin assets from the notorious flash loan attack, a menacing situation on the BSC network.
Besides the fair LP price approach, the Merlin Lab smart contracts have also gone through some changes that reduce the chances of external influences capable of degenerating into a flash loan attack.
De-Fi protocols might have the insurance coverage of their traditional counterpart the banks, but they won’t be outdone in the consumer protection setup. Many have opted to team up with insurance policy providers on the blockchain to guarantee coverage for users should an unpleasant attack happen. Merlin Lab has joined this group of relatively small outfits opting for insurance coverage for their users.
The partnership with the insurance policy provider, Soteria is such a gamechanger. Yield aggregators aren’t known for trying to protect their users, but Merlin Lab is showing how it’s done. Through this collaboration, you can get decent insurance coverage, which should shield you from the ruins of an attack.
Nothing beats regular checks in identifying loopholes that are used to orchestrate attacks. The Merlin Lab dev team is continuously monitoring the protocol’s code for attacks. It’s one of the reasons why they quickly identified the recent MERL minting exploit that happened.
MERLIN AUDITS AND TRANSPARENCY
Audits are often necessary for their prevention strategy. Merlin Lab has successfully passed yet another audit by Certik.
Merlin is currently being audited by other auditing well-known outfits. The security and transparency of Merlin is top notch. Kudos to the team behind the project.
MERLIN IMPORTANT LINKS
Telegram Announcement: https://t.me/merlinannouncements
Telegram Community: https://t.me/merlinlab
Telegram Bounty Rewards Group: https://t.me/merlinbounty
Written by @KasyWillss