Cryptocurrency is one of the newest areas of global finance and so it is frequently intimidating to new users. With stories about hacks and losses in volatile assets like Bitcoin frequently hitting the headlines, those that have not yet dipped their toe into crypto would be forgiven for thinking it is a very unsafe place indeed.
The challenges posed by hacks in particular are manifold: while everything that happens in cryptocurrency is fully transparent and traceable due to the nature of the blockchain technology it runs on, that does not necessarily stop bad actors. Just as in the world of traditional finance, those who harbour ill intent tend to find ways to break through defenses.
This means that some of the biggest cryptocurrency exchanges in the world like Coinbase, Binance and Kraken have to spend millions of dollars every year on defending their platforms from hackers. Just like the world’s biggest banks who employ thousands of people to defend them every day, crypto is increasingly having to build its own strong defenses against theft.
The DeFi safety challenge
While Binance and Coinbase have the money and manpower to do this, achieving the same level of security in Decentralized Finance (DeFi) can be harder. As a market within a market, this subsector of the crypto universe now manages over $100 billion of assets thanks to the attraction of its many features for savers and investors.
The advent of DeFi has brought banking onto the blockchain, with the many platforms and protocols within it allowing users to perform any number of financial transactions – from depositing crypto in return for an Annual Percentage Yield (APY) to borrowing, lending and so much more.
By its very nature, though, DeFi is not without risk. The fact that large parts of the ecosystem run purely on automated smart contracts and do not require users to supply any personal information at all to interact with them is a plus for accessibility and speed. However, it is often a minus for keeping people safe.
As we have seen only this week with the $621 million hack at Poly Network, even the smallest oversight in the construction of a smart contract in Defi could leave a platform vulnerable to accomplished hackers – and not all are kind enough to partially return the funds as Poly’s hacker did! This means that security of systems has to be a top priority for all operators in the DeFi space.
Bridging the divide to create safety
At YIELD App, we bridge the divide between centralized platforms like Binance and Coinbase and the totally permissionless world of DeFi. We do this through a managed platform that allows users to take advantage of the high yields available in DeFi, without having to take on the same complexity and risk that is frequently required of users in DeFi.
To invest with us and earn up to 20% APY, users only need to open an account, deposit their crypto and click invest. Crucially, though, we do require our users to verify their identities. This includes providing both proof of identity and, from September 30, proof of address. This means we are complying with standard global best practice levels of Know Your Customer (KYC) requirements in both cryptocurrency and traditional finance. In this way, we are working towards making the entire ecosystem safer for all participants, service providers and users alike.
The YIELD App safe solution
The fact that we are not fully decentralized, i.e. our platform and company is run by humans that are constantly monitoring and improving our defenses against potential exploits and fraud, provides an additional level of security.
We have a team of developers and compliance professionals located around the world that are pre-emptively researching and protecting YIELD App from multiple threats within an ever changing landscape, be that malicious intent from individuals, technology vulnerabilities or shifting regulations.
Our users’ security is our highest priority, which is why we employ highly skilled people, utilise best in class cybersecurity protections and have implemented robust proven business processes to keep our customers’ assets safe.
YIELD App is also working closely with a nascent DeFi platform that is in the process of developing a cutting edge insurance solution for cryptocurrency and decentralized finance: Steady State Finance. We plan to be one of the first platforms to utilize this product upon its launch to maximise protections through increased insurance cover of assets held on our platform.
YIELD App was founded in the recognition that a simple, safe, accessible product was needed to help everyone access the high returns available in DeFi to allow them to grow their wealth as they deserve. With safety being at the heart of everything we do, we welcome you to join us and our existing users on the start of their DeFi wealth management journey.