Security and reliability are indispensable to serious traders who trade frequently and at significant volume. DeversiFi has been designed from front to back to serve algo, quant, arb or day traders, and emulates the experience of a centralised exchange (liquidity, privacy, speed and low fees) all with the bonus advantages that come from self-custody — withdrawal-time-certainty, enhanced security, and complete control over funds.
As new technology, however, security is a valid concern which warrants extra layers of due diligence and assurance. In addition to hefty audits on our smart-contracts, we are now pleased to bring a new element of security and cover into the DeversiFi traders’ ecosystem — smart-contract insurance with Nexus Mutual, covering 1001 ETH.
For some background, funds locked in DeversiFi are held and cryptographically secured in an audited smart-contract. It’s from this contract that user activity (deposits, trades, withdrawals etc) are conducted, off-chain, using a STARK-based, Layer 2 scaling engine. Users can openly view the contracts, its code and are always able to withdraw funds in the event DeversiFi goes offline, or their tokens are un-lockable from within the UI.
From a security-assurance stance, this already represents a major advantage over traditional centralised exchanges where transparency of exchange architecture and particularly auditing of exchange security is much more difficult to do, and, as such, often uninsurable.
While there are some notable, positive counter-examples, anyone who has been in the cryptocurrency space for long enough will know that when an exchange gets hacked, money is often permanently lost with either opaque or no recourse to recovery. In short, exchanges are major targets and the more transparent, well-audited and insured an exchange is, the safer it is to be trading there.
As aforementioned, DeversiFi is a self-custodial exchange built for serious traders and as such we are ticking off every relevant box to ensure DeversiFi is a safe exchange to trade on, no matter what happens. As a DeversiFi trader, you now know you’re trading on an exchange:
- With heavily audited smart-contracts that are transparent and cryptographically secure
- Where you can always remove your funds in various ways in the event of site downtime
- Which now has financial insurance for any unforeseen loss of smart-contract funds, covering 1001 ETH with future scope for more
DeversiFi has arranged this insurance with Nexus Mutual — an Ethereum-focused insurance protocol allowing people to share risk without the need of a traditional insurance company, covering smart-contract code risk, potential bugs, or exploits (e.g. The DAO).
DeversiFi gives traders the edge in fast moving decentralised finance (DeFi) markets by allowing them to trade at lightning speed and with deep aggregated liquidity, directly from their privately owned cryptocurrency wallet.
Traders can take advantage of more trading opportunities while always preserving control of their assets for when they need to move fast. DeversiFi’s order-books are off-chain, but settlement occurs on the Ethereum blockchain. This means that traders benefit from fast moving order books and instant execution, without having to trust the exchange and whilst always maintaining control of their assets at all times.
For the first time, traders can enjoy all the benefits that they would expect from a legacy large centralised exchange, but with no exchange or counter-party risk.