Scaling Security: Lendvest’s Strategy for Improving DeFi Economics with Olympix’ Web3 Security Tools
Scaling Security: Lendvest’s Strategy for Improving DeFi Economics with Olympix’ Web3 Security Tools
November 9, 2024
Introduction to Lendvest
Lendvest is at the forefront of decentralized finance (DeFi) innovation, providing non-custodial, fixed-term loans to its users. During its private beta, Lendvest achieved the highest utilization rate in DeFi lending, underscoring its ability to offer capital efficiency and transparency in the blockchain security space. As DeFi continues to evolve, web3 security has become an even more critical aspect of growth, especially for protocols managing significant amounts of capital.
Proactive Security for Market-Proven Success
As a non-custodial platform enabling fixed-term loans, Lendvest faces the dual challenge of maintaining cutting-edge innovation while ensuring that its smart contracts are secure and resilient. In an industry where security breaches can result in severe financial losses, Lendvest recognized that traditional smart contract audits and bug bounty programs were not enough. While audits remain an essential layer of blockchain security, they are reactive by nature. In a space where scaling capital quickly leads to increasing security costs, Lendvest required a proactive security solution that could empower its core developers, already experts in the codebase, to ensure continuous security throughout the development process, rather than relying solely on external auditors.
Joshua Gottlieb, Co-Founder and CEO of Lendvest, emphasized this point, noting,
"We believe in using Olympix and growing with Olympix to have better economics as a company, where we can save on security costs as we scale without compromising on security itself."
Olympix’s Quantifiable Impact for Lendvest’s Product Launch
The benefits of implementing Olympix’s proactive blockchain security tools were significant. In preparation for their first product launch, Lendvest was able to roll out its minimum viable product (MVP) with $95,000 in on-chain capital while spending just $9,000 on an initial audit—a substantial cost saving compared to industry averages of about $25,000 for a competitive bug bounty. Furthermore, Olympix's thorough vulnerability detection helped Lendvest skip unnecessary smart contract audit cycles, enabling the team to focus on the most valuable security efforts.
By using Olympix to handle the early stages of their web3 security process, Lendvest saw a clear return on investment.
A Shift to Proactive Security with Olympix
To meet these demands, Lendvest turned to Olympix’s enterprise-grade proactive web3 security tools. Olympix’s static analysis and mutation testing capabilities allowed Lendvest to identify vulnerabilities early in the development cycle, long before smart contracts entered external audits. The static analyzer, superior to open-source alternatives, offers deep contract traversal and is optimized for enterprise scalability. This level of real-time detection enabled Lendvest's core developers—those most familiar with the codebase—to identify security vulnerabilities early, significantly improving both security and development efficiency.
As Gottlieb explained,
"Olympix as a tool enables our core developers to implement security themselves, instead of relying on teaching a third-party firm and outsider. That’s where you're capturing all the alpha."
Olympix’s role in Lendvest’s workflow also streamlined the internal audit process. The ability to break down tests part by part allowed Gottlieb, as a technical product manager, to collaborate more effectively with developers to build robust, initial test suites.
"Olympix helped create that initial framework of tests, broke down the testing task really well, and allowed our engineering team to tackle the technical backlog," Gottlieb noted.
Conclusion
Lendvest’s commitment to blockchain security has positioned it as a leader in DeFi innovation. By integrating Olympix’s proactive security tools, the team has been able to ensure that their platform is robust, efficient, and ready to scale without sacrificing security. As Lendvest continues to innovate in the web3 ecosystem, their partnership with Olympix represents a new standard in how DeFi projects can approach security—proactively, efficiently, and economically with their core developers at the helm.
What’s a Rich Text element?
The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.
A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!
Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.
Follow-up: Conduct a follow-up review to ensure that the remediation steps were effective and that the smart contract is now secure.
Follow-up: Conduct a follow-up review to ensure that the remediation steps were effective and that the smart contract is now secure.
In Brief
Remitano suffered a $2.7M loss due to a private key compromise.
GAMBL’s recommendation system was exploited.
DAppSocial lost $530K due to a logic vulnerability.
Rocketswap’s private keys were inadvertently deployed on the server.
Hacks
Hacks Analysis
Huobi | Amount Lost: $8M
On September 24th, the Huobi Global exploit on the Ethereum Mainnet resulted in a $8 million loss due to the compromise of private keys. The attacker executed the attack in a single transaction by sending 4,999 ETH to a malicious contract. The attacker then created a second malicious contract and transferred 1,001 ETH to this new contract. Huobi has since confirmed that they have identified the attacker and has extended an offer of a 5% white hat bounty reward if the funds are returned to the exchange.
