PROBLEM DEFINITION

DeFi or Decentralized Finance is a relatively new area in the cryptocurrency ecosystem. Big opportunities arise and many early adopters find themselves successful in this new era. However breaking new ground means new opportunities for hackers and scammers as well. There are mainly two issues in the world of DeFi :

Code exploit

A DeFi project provides full transparency towards its investors by sharing its project code. However, keeping code open source also benefits cybercriminals, analyzing the scripts for vulnerabilities and planning exploits in advance. As a result of security breaches and code exploits, hackers stole approximately 2.3B$ during the course of 2021.

Rugpulls

Scams totalled an overwhelming 7.7B$ in 2021, of which approx 2.85B$ was caused by Rugpulls. Due to the many open source examples, tokens are relatively easy and cheap to create. Listing tokens on decentralized exchanges or so-called DEX platforms happen without any supervision or code audit. While code audits are common, they’re not required in order to list on most DEX platforms, hence the many rugpulls. Scams represent a huge barrier towards the further development of cryptocurrency adoption. News of a scam spreads widely across social media and makes people wait on the sideline. People who got scammed are left without money and lose trust or leave the cryptocurrency scene. A further increase in regulation and policies is needed. Most of today’s scams can already be prevented by performing an audit on code exploits and rugpulls. Code audits are a process in which an independent party analyzes the code behind the project and its token. Itpublicly confirms that there are no security vulnerabilities exploited nor the developer can take off with investor’s money. Granting certificates brings investors necessary assurance and peace of mind.

• Today there are a number of independent Audit companies active. The process of Auditing has proven to be effective in crypto. Overlooking the current players in the Audit market there are two bottlenecks :
• The biggest Audit companies are VC funded and have a heavy governance/operating model. The average lead process from quote to license delivery can vary from a number of weeks to months. Long waiting times are a bottleneck for projects which are in fact ready to launch but are in need for proof of license in order to assure investors a safe haven to invest. The structure of a heavy organization needs to be paid. The cost of an audit is significant, money not all startups can afford.

To summarize due to the large amount of recent scams, low budget startups with both a good project case and intention are blocked because of the cost of an audit license and the long waiting times to acquire them. On the other hand, anno 2022, the chance of getting funded without an audit is minimal.

MISSION

The goal of our services is to provide an independent appraisal which examines and evaluates Defi project operations as a service to future investors. DeFiPass examines and evaluates project activities, provides management with objective, accurate analysis, develops recommendations and provides information regarding startup activities. DeFiPass performs audits in all areas of the project by performing code audits, contract scans, penetration testing, and performing full control by accessing all project records, physical properties and team members relevant to the audit process.

VISION

Our vision is to be a valued partner within the niche of the crypto ecosystem by providing DeFi project initiatives assurance and consulting services that help them meet goals through building trust towards future investors. We aim to become the standard, providing the best quality while ensuring minimal lead times at a competitive price.

CORE VALUES

To assist in the accomplishment of our mission and the realization of our vision, DeFiPass has established the following core values: Leadership – Continuously strive to obtain further training to advance our knowledge, skills, and awareness of emerging issues affecting all facets of the DeFi ecosystem. Integrity – Perform work honestly, diligently, and ethically to establish trust and a basis for reliance on our assessments. Objectivity – Perform duties with an unbiased mental attitude to ensure assessments are not unduly influenced by our own interests or judgments. Confidentiality – Respect and safeguard the privacy of persons and confidential information and do not disclose information without appropriate authority unless there is a legal or professional obligation to do so. Communication – Communicate with coworkers and customers in a constructive and positive manner. Reports will be accurate, timely, and contain relevant recommendations. Please contact us with any ideas, questions, or concerns you may have about our mission statement and valued way of working. Confidentiality is maintained in all aspects of an audit.