Security Standards Blueprint
Conflux Network, mStable and Quantstamp are collaborating to establish an auditing standard for DeFi
With the recent quantitative easing and the growing instability in the traditional financial markets, there is a new wave of sophisticated institutional investors looking at DeFi for hedging and better returns. However, the risks associated with the DeFi platforms and systems, in general, are relatively higher compared to the long-established, highly-regulated traditional financial market.
The Open DeFi members network observed this gap for evaluating risks. Quantstamp, mStable and Conflux Network came together to conceptualize the idea for making a DeFi auditing standard for measuring technical and economic risk for institutional investments.
The DeFi protocols that meet the standard get issued a tokenized certificate along with an easy-to-digest report on potential vulnerabilities and token-economic risks.
The idea stems from the millions of digital assets lost in DeFi protocols. By bringing together experts in the space and the community of developers, we aim to open up a formal verification process that checks for deep underlying security risks that have been preventing more capital from flowing in. The long-term vision is to productize this offering where DeFi protocols will submit the code to verify for security.
The project development roadmap consists of four major work-streams:
- Customer Research — To understand what the Institutional Investors are looking for and concerned about most when investing in DeFi
- Security Research — Analyzing the existing audit reports available and consolidating the findings relevant for institutional investors
- Define the Risk Parameters — Specifying the technical and financial parameters that are crucial for high-value investments
- Productize the Standard — Creating a product offering for the standards to automate the assessment and certification
We are following an open community-driven approach to build this standard and have started creating bounties for components by splitting the work-streams into smaller tasks.
The initial set of contributors will become part of a working group consisting of Developers, Token Engineers, Authors, Reviewers. The community contribution will be recognized on all publications related to the standard and on our social channels. The contributors also get an opportunity to network with other talented developers and researchers, mentorship on DeFi development from industry experts within the Open DeFi members group, exclusive access to more bounties, and to showcase freelance and job opportunities in the industry.
To start working on the bounties and get a chance to become part of the core working group, please check out the open bounties on Gitcoin:
If you are interested in learning more, have suggestions on ways to improve the concept, and/or want to contribute to the development, please write to us at — email@example.com