Blockchain security and data analytics companies Quantstamp and PeckShield have published a security review and smart contract audit report of the Uniswap fork DeFi protocol SushiSwap.
According to SushiSwap’s security review, there were ten security flaws within the platform. They identified 2 medium risk issues, 3 low-risk issues, and 5 informational issues. Surprisingly, there seem to be no critical or high issues to suggest re-deployment of the existing contracts.
Designed to be the next step forward of Uniswap’s existing protocol, SushiSwap has community-oriented features that would provide huge incentives to liquidity providers. Founded by anonymous developers, led by Chef Nomi, this asset is among the ‘weird DeFi’ and controversial one yet it has recorded a trading volume of over $120 million (24h).
Skeptics were waiting for this protocol’s smart contracts to be audited but according to previous Co-Founder of CryptoFin Labs Daniel Que, SushiSwap’s smart contracts were actually pretty good.
The SushiSwap smart contracts are of surprisingly good quality, especially for something that appears on the surface to be a meme coin.
— Daniel Que (@danielque) August 29, 2020
This is backed by the SushiSwap smart contract audit report published today. As stated under its key findings, these smart contracts are well-designed and engineered. Once the identified issues — 2 high-severity vulnerabilities, 3 medium-severity vulnerabilities, 6 low-severity vulnerabilities, and 2 information recommendations — were addressed, the implementation can be improved.
Several DeFi experts are against SushiSwap for apparent reasons. Among them is the Co-Founder of lending protocol Dharma Labs Brendan Forster who hopes that the SushiSwap experiment “fails”.
I usually don’t opine about specific projects, but if I’m being honest, I hope this SushiSwap experiment fails.
Forking liquidity will make swap prices worse for all users and make impermanent loss worse for all LPs.
The only beneficiaries are the Sushi founders 🤮
— Brendan from Dharma (@brendan_dharma) August 29, 2020
SushiSwap, a fork of Uniswap, functions with a governance token called SUSHI that is valued at a price range of $5-$6, at the time of writing. It has already hit the $700 million-mark in total value locked (TVL) within three days of the project’s announcement.
Unlike SushiSwap, Uniswap doesn’t have its governance token yet and offers collected trading fees to its liquidity providers. Notably, it replaced Maker as the dominant one in the DeFi market as it recently surpassed Coinbase Pro’s trading volume .
The DeFi market continues to boom as more novel protocols enter the space. Even the ascent of decentralized exchanges (DEX) is here and Uniswap remains to be the leader of the pack. As things stand now, the success of speculative projects like SushiSwap is still uncertain.
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