Investment-backed auditing platform Sherlock.xyz aims to keep your smart contracts bug-free

Sherlock.xyz – Porkbun customer – (United States)

The .xyz community is home to forward-thinking innovators developing solutions using blockchain technology. Collaborative platform Joyn.xyz aims to support the large-scale co-creation of web3 media. Music-focused platform Relics.xyz helps fans to collect and display music collectibles as digital assets. DAO-governed Universe.xyz helps artists mint NFTs and launch community-driven NFT universes. In this week’s  #BlockchainThursday, we’ll introduce you to a blockchain-based auditing platform focused on the protection of decentralized finance (DeFi) platform users: Sherlock.xyz.

Introducing Sherlock.xyz, a smart contract auditing platform

The Ethereum-based Sherlock.xyz aims to help protect users of DeFi platforms by providing security reviews from top independent auditors, as well as optional smart contract “insurance” coverage on the audited contracts. In September 2022, the platform raised $4 million in a seed round led by early-stage venture firm Archetype.¹

Sherlock.xyz ecosystem: Protocols, Stakers, and Watsons

The platform’s ecosystem has three main participants: Protocols, Stakers, and Watsons. 

• Protocols can come to Sherlock.xyz to have their smart contracts reviewed by top security experts (as stated in the platform’s docs) and have the option to add coverage on the contracts. The coverage acts as a guarantee that if a critical bug is found in the smart contract, Sherlock.xyz will have to pay out up to $10 million. This feature can help the user feel confident that the auditing process is thorough and that Sherlock.xyz has a vested interest in ensuring each contract is secure.

• Stakers can deposit USDC cryptocurrency into Sherlock.xyz’s staking pools to earn high annual percentage yields (APYs) and incentives such as rewards paid in SHER tokens, the governance token for the Sherlock protocol. Stakers are incentivized to stake due to the high APY, the quality of Sherlock’s auditors, and the large bug bounty programs that each covered protocol must have.

• Watsons are the security experts that perform full audits of each prospective protocol’s contracts. They provide input on the risk of the protocol’s contracts. Sherlock.xyz audits are conducted by auditors the platform has worked with before, who are incentivized to find vulnerabilities in the codebase. ​​There is also a bug bounty program where anyone in the world can find bugs. The objective of the bug bounty program is to ensure that the auditing process is thorough and that all potential vulnerabilities are identified.

Learn more about Sherlock.xyz

Sherlock.xyz aims to create a secure and transparent DeFi ecosystem by providing protocols with first-rate security reviews and optional coverage, stakers with high APYs and incentives, and security experts with opportunities to help find vulnerabilities. We are inspired by the innovative solutions developed by Sherlock.xyz. You can learn more by following the platform on Twitter, joining the Discord, and visiting Sherlock.xyz.

^{1. https://www.coindesk.com/business/2022/09/14/crypto-auditing-platform-sherlock-raises-4m-in-funding/}