What is lossless?
Lossless protocol is a platform that provides anti-hacking solutions, a security protocol for DeFi to detect and prevent fraudulent transactions to return accounts to users.
How Lossless works
The Lossless Protocol is a piece of code that token creators insert into their tokens – this code allows Lossless to freeze any “black” transactions based on a set of fraudulent identifiers.
There are two processes to recover stolen funds:
-Emergency/immediate freeze after being hacked – this step is community and technology based, rewards the person who identifies the hack and freezes the transaction.
-The longer/permanent freeze occurs after a hack is verified by the Lossless committee, the company and the token creator, which will take steps to reverse the fraudulent transaction.
The mechanism of Lossless operation is based on the Proof of Stake mechanism.
Participants in the platform to become the custodian of hacking transactions must stake their tokens to the platform. If a transaction is found to be hacked, the searcher can freeze the trading account within 24 to 48 hours.
A committee consisting of the Lossless author, the Lossless company and the token creator will re-evaluate the transaction in order to make a decision to freeze it for longer or permanently.
The searcher's staked token reward mechanism will be executed if the transaction is actually hacked or not.
Hack search method
Listen for events on the thread,
-e.g. Mint(), OwnershipTransferred() – Smart contracts emit events about certain actions.
-Example: Mint() – Event emitted on blockchain if new ERC-20 token is mined.
By listening for this event, searchers can find a hack.
Check for abnormal token activity,
-e.g. large trades, pulling liquidity
Very unusual token activity, such as very large transactions from team wallets without prior notice, could also be a sign of a hack.
3rd party reports,
-e.g. about exchange hacks
Hacks in the blockchain can also be identified with the help of 3rd parties.
-For example, a centralized exchange could publicly announce a security leak that those who find it can use to freeze affected addresses.
Lossless outstanding features
-Different approach to blockchain security – mitigation vs containment (the latter has proven unsuccessful)
--Encourage decentralized community
-Focus on user-friendly UX/UI simplicity
-Advantage of Early Campaigners Experienced Teams
The economic model
An estimated 7% fee is paid from the stolen hack transaction. Paid only when the account is frozen, with the original token.
-2% paid to searchers
-2% distributed to LSS token holders.
-2% of shares distributed to the Lossless Committee
-1% is retained by Lossless company
-Early Adoption Incentives
Affiliate and referrals
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