Smart contract auditor CertiK is offering coverage for lost or stolen crypto tokens as part of a new membership service.
The news comes even as Certik-certified crypto projects in the decentralized finance (DeFi) space continue to fall victim to hackers and rogue actors intent on exploiting vulnerabilities in smart contract codes.
CertiK Providing Coverage for Stolen Crypto
According to Crowdfund Insider, CertiK has unveiled a membership plan called CertiKShield that offers reimbursement of stolen or lost cryptos. Users who own shielded accounts on the service will reportedly receive compensation if their coins get siphoned by hackers, based on certain reimbursement limits.
To participate in the service, users join the collateral pool by purchasing “Shields” and then committing crypto funds to it. The purchased Shields represent reimbursement limits backed by the user’s share of the collateral pool.
According to the announcement, payouts to claimants will come from the collateral pool based on the reimbursement limit associated with the purchased Shield amount. To incentivize committing funds to the collateral pool, contributors will also reportedly earn service fees charged to Shield purchasers.
CertiK says the service will cover crypto tokens across any blockchain network. Multi-chain DeFi lending protocol Kava is already one of the first CertiKShield members.
Smart Contract Auditing is No Silver Bullet
Commenting on the launch of the program, CertiK COO Daryl Hok remarked that CertiKShield acts as secondary protection on top of the company’s smart contract auditing service. According to Hok:
“CertiKShield membership is a valuable safety net in case anything unexpected happens.”
The CertiK COO also defended the company amid the storm of DeFi hacks and exploits affecting CertiK-certified DeFi projects. Speaking during the CertiKShield launch, Hok argued that smart contract auditing was not a silver bullet against malicious DeFi exploits.
Earlier in November, DeFi platform Akropolis became the latest CertiK-audited protocol to suffer a hack as an attacker drained several savings pools of about $2 million in Dai (DAI) stablecoins. Previously, stablecoin issuer Lien and lending service bZx also suffered similar attacks.
As previously reported by BeInCrypto, DeFi-related theft is the leading cause of lost and stolen cryptos in the industry. Rogue actors continue to take advantage of the DeFi hype to con unsuspecting victims using malicious contract codes and other attack vectors.