IDEX Undergoes Smart Contract Audit Instead of Riding the “Test in Prod” Narrative
IDEX, a decentralized exchange, will use crypto firm Quantstamp to audit its smart contracts. It comes at a time when most DeFi projects are launching without strict audits.
A DeFi alternative to CEXs
In a release, IDEX said the launch of its upgrade, the IDEX 2.0, will focus on user security as concerns around DeFi projects and the robustness of smart contracts used in such implementation comes into question by investors.
The firm has chosen Quantstamp for reviewing the smart contract code, aiming to cull any untoward incident in the future while placing user security at the forefront of a rapidly expanding DeFi sector.
IDEX launched in October 2017 in an ICO that saw investors pour in over $5 million in a token sale. Interestingly, its protocol resembles the user experience of popular crypto exchanges like Coinbase in order to provide a better, and more accessible, trading experience for potential users. Features include the ability to place limit orders and receive Gas fees back on any canceled transactions.
The firm, a self-custodian crypto exchange, even raised $2.5 million from blockchain venture capital firms G1 Ventures and Borderless Capital to further its legitimacy in building a DEX product that rivals centralized exchanges.
Here’s how it works: IDEX utilizes smart contracts deployed and implemented on Etherum and moves funds between ay two contracts only when transactions are signed by a user’s wallet or custody provider.
IDEX Ups Security
And when IDEX 2.0 launches, the firm aims to use enhanced smart contract design to lower gas fees, implement a layer 2 scaling solution for the exchange, and create enhanced APIs so that it can integrate with other DeFi products, as noted by crypto publication Decrypt.
IDEX CEO Alex Wearn told the publication:
“There are multiple forms of risk in DeFi today, and we’re working to minimize all of them for our users. This audit with Quantstamp is an important step to ensure the smart contracts themselves function as intended and won’t put users’ funds at risk.”
He added that the firm takes multiple steps to review any assets before listing them on IDEX, which includes interviews with the team, legal review of the entity behind the project, and smart contract audits.
The development comes as a “test in production” narrative has become a popular manner of product offering in the crypto markets. This sees developers ship unaudited, unsecured code to users with the hopes that it doesn’t fail and no funds are lost.
However, that – undeniably – results in a backfired offering. Yam Finance investors learnt this the hard way earlier this month – over $750,000 in user funds where locked on the protocol after a smart contract vulnerability was discovered.
But IDEX is ensuring it does not go down that path.