Terraform Labs has announced a $ 10 million Terraform Capital fund to cover audits of DeFi projects and the extended integration of TerraUSD (UST) and LUNA stablecoins.
Terraform Labs co-founder Do Kwon said that the fund’s main goal is to ensure that the stable UST and LUNA cryptocurrencies are used as much as possible in the decentralized finance (DeFi) industry. In turn, Terraform Labs will cover the costs of projects associated with the passage of security audits.
Kwon expects the return on investment to be strong – nearly a hundred audits can be funded to ensure the successful integration of Terra stablecoins. Terraform Labs has already compiled a list of auditors, which include Sentnl, Quantstamp and Solidified. Jeffrey Kuan, Head of Business Development at Terraform Labs, said:
“It doesn’t matter what blockchain the project is running on. The Terraform Labs Foundation invests in any projects that can interact with Terra stablecoins. In addition, it will accelerate the development of projects based on Ethereum. ”
According to Quantstamp CEO Richard Ma, only in 2020, as a result of hacks in DeFi projects, $ 240 million worth of crypto assets were stolen. So, in November, the Akropolis project was attacked, during which hackers managed to withdraw $ 2 million in DAI stablecoins, and a month earlier, cybercriminals attacked the DeFi Harvest Finance protocol and stole $ 25 million worth of crypto assets.
There are situations when a project can be closed due to a critical error in the smart contract code. This happened with the YAM Finance project, which was subsequently forced to restart. Therefore, the head of Quantstamp emphasized the importance of passing an audit of smart contracts, since we are talking about the security of users’ funds.
Recall that last year, Terra, together with Cosmos and Polkadot, introduced a DeFi product called Anchor, which offers stablecoin deposits with interest.
Telegram channel!
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
