What is Hapi? To answer that let’s first start with the problem. With most DeFi projects, it often takes a lot of work and effort to make it launch successfully. Once the project launches, the team won’t be able to have too much influence on the project. And this is where unforeseen events can happen leading to disasters. Cybersecurity risks are one of the biggest risks that can occur in the DeFi space. These risks can easily occur in the blockchain, oracles, and API. So what can we do to mitigate these risks…?
This is where HAPI comes in. HAPI is an onchain cybersecurity protocol that will create trustless oracles. It is a set of cross-chain smart contracts which are embedded into DeFi products further allowing them to new a high in security level. This is the first project launching from the Hacken Foundation. The Hacken Foundation will manage the business development direction for HAPI. Moreover, to ensure the continual development and safety of the platform, the tech team has received an in-depth due diligence.
How does it work?
So the way that HAPI works is that the oracle will notify whether the smart contracts have an audit or not. They will then select the information will then be issued by the selected data providers and chosen by token holders. The HAPI DAO will then select the main data provider. The auditor of a smart contract will upload data on conducted audit into the provider’s database and the information will be transferred to the HAPI smart contract. So for every time a DEX user selects a token to trade, the exchange will then request their smart contract to check the audit status. If the token is not audited, the exchange will then notify the trader on the risks and can even impose limits to buy/sell of the order, or even restrict the purchase of the token.
What are some real life examples?
So let’s just say a hacker breaks into an exchange’s hot wallet and then begins to transfer funds out of the exchange. The exchange will then need to send the address and coin details immediately to HAPI. All the exchanges that connect to HAPI will then receive this information and will be able to block these transactions and funds. DEXs will then utilizes smart contracts allowing them to reject requests from unknown addresses using HAPI. In addition with the momentum of the attack slowed and a portion of the funds blocked, the platforms will be able to have time to resolve the issues.
Tell me some more use cases...!
HAPI as you know has many big use cases surrounding security. So the platform revolves around making the best choices and works in the best interest for users like DEX, CEX, or any DeFi project.
CEXs have protection from accepting stolen funds. If the CEX is connected to HAPI, they will be warned in the case of stolen funds that are deposited on their platform. The exchange will also have the ability to block the funds until the situation is resolved.
DEXs will cut back on suspicious addresses. With the help of HAPI smart contracts and the Oracle DEXs like Uniswap, Sushiswap, it will more easily identify suspicious wallet addresses and reject any transaction requests to prevent money laundering.
With a decentralized security audit database, DEXs and CEXs will be able to access information on which specific smart contracts have undergone security audit. Furthermore, if there was no audit, the exchanges can notify the users on possible risks, impose limits to buy/sell, or even completely restrict the purchase with high-risk tokens.
What are some key features of Hapi?
Before jumping deep into how HAPI works, we should talk a little about the key points. These key points include:
- Built for the most popular blockchains (Ethereum, Vechain, Polkadot, etc)
- All DeFi projects will increase security by adding the HAPI module
- HAPI will become the security standard for DEXs, lending protocols, derivatives protocols, and other DeFi classes
- They vote on data provider via DAO
- Cost of reputational loss to a Data Provider will be significantly higher than the potential damage caused by false data
- Data will be on-chain, publicly available
- Ability to request to change or add additional data will have fees
The HAPI token?
The HAPI Token is an ERC20 token that will ensure the smooth operation of their protocol. $HAPI will connect Data Providers to security Oracles. Apart from such uses, $HAPI also has various other uses including:
Data Submission Fee:
So this allows for users to have the right to submit any information connected with a hack or rejected voting proposals.
Holders of $HAPI can stake the token to participate in the project governance and elect Data Providers. Holders can also vote on key proposals.
Any transaction made in the security oracle database for audit review will require HAPI to serve as the payment method to Oracles.
DeFi Project Audit Submission:
A unified report center to ensure the security of DeFi projects.
$HAPI token holders can stake tokens to receive HAPI tokens as an reward.
*Note that you can store HAPI in any wallet that supports ERC20 tokens
The team at HAPI is building the next protocol that will improve the security of both decentralized applications and centralized applications by simply using the required data that is analyzed in advance. So if you would like to check out more about HAPI, check them out in their socials!
US publicly traded firm MicroStrategy, which now owns a massive Bitcoin (BTC) stash after its Bitcoin-buying spree last summer, has seen its stock price falling
Arthur Hayes, founder and the former chief executive of crypto derivatives exchange BitMEX, who is wanted by the U.S. government, could surrender to the US
PayPal is in the process of buying cryptocurrency custody firm Curv, a technology firm focusing on the secure storage of crypto assets, according to CoinDesk’s