Deep Insights 04: Security of HurricaneSwap
In 2021, many cross-chain projects including some famous ones have encountered hacker attacks, which also affected dozens of projects which cooperated with them. Cross-chain protocols are currently facing huge security challenges: the cross-chain mechanism and ecosystem are not yet mature enough, and they are bound to attract the attention of hackers as the cumulative asset scale of cross-chain projects continues to expand.
The smart contract vulnerabilities of single-token cross-chain protocols are the main reason for hacker attacks, by which hackers obtain multiple tokens, and transfer them immediately through cross-chain bridges, and then conduct money laundering by cryptocurrency tumblers.
The HurricaneSwap team realized the risk of single-token cross-chain very early on, and Roke Protocol, the LP-Bridge of HurricaneSwap, has inherent advantages over others. Roke Protocol will mint an aLP on Avalanche from the LP on the original chain through HurricaneStation. LP is extremely secure on the source chain, so is the aLP as no one except for HurricaneAlliance has the authority to perform a single-token cross-chain operation. Therefore, if a hacker issues a cross-chain asset through an attack, there is no way to escape.
HurricaneSwap has a number of measures to enhance the security of assets.
Firstly, the code of HurricaneSwap was audited by the well-known blockchain security company PeckShield to ensure no vulnerabilities in the contract.
Secondly, HurricaneSwap will introduce a mechanism to obtain the amount of assets locked in the source chain and the amount of a-assets issued by Avalanche, and ensure that the threshold of the gap between the source chain assets and a-assets is 1%. Once the ratio is greater than 1%, it will trigger the fuse mechanism and veto any calls of a-assets to prevent malicious additional issuance from affecting the contract.
Thirdly, HurricaneSwap has established the HurricaneAlliance to eliminate the price gap between HurricaneSwap and other exchanges. With the permission of single-token cross-chain transfer, HurricaneAlliance can narrow the price gap by conducting high-frequency transactions through professional quantitative models and ensure the price consistency of original assets and a-assets, so as to avoid the losses to users due to the price differences.
HurricaneSwap is the first decentralized cross-chain swap built on the Avalanche. With the innovative LP-bridge mechanism (Roke Protocol), HurricaneSwap provides users with a high-performance and low-fees, as well as unparalleled, seamless cross-chain trading experience.