UltraSafe Raises The Bar For Security And Safety in The DeFi Space
Making decentralized finance safe is a massive undertaking, given the current limitations and market approaches. Most projects focus on providing rather basic security while focusing on very high returns on investment. Projects like Ultrasafe take a different approach, as their priorities are security and community engagement.
A Safer Solution For Defi Projects
As has become painfully apparent in the world of decentralized finance, many projects seemingly do not take security all that seriously. An unfortunate trend, although one that is also somewhat to be expected. This industry is getting very competitive, and bringing new ideas to the market often trumps everything else. It is also one reason why so few projects undergo code audits, as it would prevent them from hitting the market right away. An unfortunate trend, as code audits tend to make DeFi projects much safer from day one.
However, there are other ways to go about protecting users as well. A code audit is not a must-achieve milestone whatsoever, although it can lend more credibility to particular projects. Another option to protect investors and traders is by ensuring there can be no rug pull. For those unaware, rug pulls are a lot more common in the world of decentralized finance than one might think. A lot of projects have fallen victim to this issue, affecting thousands of investors along the way.
A rug pull occurs when the initial liquidity for the trading pair on a decentralized exchange evaporates. More often than not, that is the work of the coin's creator, who wants to pocket some money quickly. It is relatively easy to create initial DEX liquidity and then remove it, leaving all other token buyers hanging out to dry. Preventing that from happening is possible by locking liquidity for several months or years, ensuring there will always be an option for token holders to trade in and out of the asset.
UltraSafe Raises The Bar
Providing the rug-proof option to investors is only the first step, however. Projects like UltraSafe acknowledge there is much more to be done, although rug-proof support is an integral first step. Taking it one step further, the project also maintains an automatic partial token distribution to both the liquidity pool and token holders. Half of the fees are used to prop up the UltraSafe token price in the liquidity pool with its standard transaction fee, whereas the rest goes to token holders via reflections.
The purposefully chosen approach to increase overall liquidity is a solid commitment by the developers. It shows they have no interest in performing a rug pull and have a long-term vision for the project. That becomes even more apparent when looking at how they tie development goals to community growth. As more token hodlers exist, the team will roll out new features. It is a different type of incentive in this industry, although a valid approach. It has also allowed the community to grow exponentially, something many other projects struggle with to this very day.
Closing Thoughts
The DeFi industry is firing on all cylinders yet still has many shortcomings to overcome. Providing a safe and secure environment for traders and enthusiasts needs to be a much bigger priority for most projects on the market. Sadly, very few of them go through the necessary lengths to do so, even though it would be in their best interest. Users need to feel safe and secure at all times, particularly where finances are involved.
The locking of liquidity and establishing a higher price floor for every transaction taking place within the project is a solid and non-invasive approach to providing extra peace of mind to token holders. In an industry where volatility is the norm, developers should spare no effort to empower investors and speculators.
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