Lossless: The Essential Security Layer for Every Crypto Project and User

“Lossless provides bleeding-edge Web3 security framework to selected projects. We continuously push the limits of what’s possible and reinvest a substantial share of our profits into R&D to find new innovative ways to protect our clients.”

The Genesis of Lossless

Lossless was founded in 2021, at a time when security in the blockchain space was limited mostly to audits. Audits are useful for identifying vulnerabilities in smart contracts, but they have limitations. As projects evolve, new contracts are written, or existing ones are modified without necessarily undergoing further security checks. Recognising this gap, the team at Lossless began developing a suite of proactive security tools that would offer continuous protection, helping founders secure their treasuries and investors’ assets even after audits.

Lossless Services: Comprehensive Security for Web3

To date, Lossless has developed four innovative solutions aimed at providing ongoing protection for both users and projects. These services work together to create a holistic security framework designed to mitigate risks and recover assets in the event of a breach.

Lossless Protocol

The cornerstone of the Lossless ecosystem, the Lossless Protocol is a revolutionary tool that can be embedded directly into a token contract. This integration allows for transactions to be reversed, giving the ability for projects to recover stolen funds, and in cases of suspected hacks or fraudulent actions, any user can submit a claim. A panel of independent experts reviews each claim, and if justified, the stolen tokens are frozen — regardless of their location — while recovery proceedings are initiated.

A notable example of the Lossless Protocol in action occurred during the Vulcan Forged exploit in November 2023. Following a successful hack that drained the protocol, Lossless recovered $800,000 in stolen funds, returning them to Vulcan Forged. This event demonstrated the Protocol’s effectiveness in real-world scenarios, making it not just a theoretical safeguard but a proven solution. You can read more about this incident here.

Additionally, the Lossless Protocol will be integrated into Solidproof’s forthcoming Token Minter service, which is currently nearing BETA release. This collaboration will further enhance security for tokens minted through Solidproof.

Token Minter

Lossless offers a native Token Minter service, allowing project founders to create their own tokens. Tokens minted through Lossless function like any standard token in the DeFi space, but with one major advantage — the Lossless Protocol is embedded into the contract, providing enhanced security features in case of malicious activity.

An additional benefit of using Lossless’s Token Minter is the option to have the token automatically audited by Hacken with a Partner discount of $3000. This is significantly lower than Hacken’s typical auditing costs, offering a cost-effective way to ensure your token is secure from the start.

Lossless Vault

For projects looking to secure their treasuries and liquidity pools, Lossless Vault offers an essential layer of protection. This service can be applied to a variety of assets, including multi-signature wallets, ICO contracts, and vesting schedules, as well as DeFi vaults, DEX liquidity pools, and cross-chain bridges. By employing multiple strategies, Lossless Vault ensures that project assets are secure, whether they are held in treasuries or liquidity pools.

Lossless Aegis

Aegis is Lossless’s flagship service, designed as a firewall against malicious blockchain activities. Aegis provides several key functionalities, including contract tracking, automated contract scans, and live alerts for suspicious interactions.

• Aegis Pro: Gives you access to the full suite of Aegis tools, from wallet tracking to smart contract tracking.
• Aegis dApp: The Telegram app, allowing users to track any wallet and also manage their wallet security through Telegram.
• Aegis Snap: Available for all MetaMask users, allowing them to scan smart contracts before they interact with them.

Aegis has five service levels, accessible via holding between 200 and 1,000 $LSS tokens, which provide varying levels of protection and monitoring. For more advanced users, Lossless offers Aegis Premium, a subscription-based service providing enhanced security features. To access Aegis Premium, users can contact the team directly at hello@lossless.io.

Lossless Revenue Model

Lossless generates revenue primarily through its Protocol and Aegis services:

• Institutional Aegis Fees: A monthly or annual fee is charged per protected contract. Additionally, users who submit a claim for investigation are required to pay 2,500 $LSS. In the event of a successful recovery, Lossless takes a 7% fee from the total value of recovered funds.
• Aegis Premium: A tailored subscription fee is charged for Aegis Premium users, depending on their specific needs.

The majority of the revenue from these services is reinvested into research and development (R&D), enabling Lossless to continuously improve and expand its offerings. Furthermore, all funds raised from successful recoveries are used to buy $LSS tokens from the open market, which are then distributed to $LSS holders and stakers. Notably, no revenue is used to cover salaries, as these are paid from a Treasury established during initial fundraising, ensuring financial sustainability for the foreseeable future.

$LSS Token Utility

The $LSS token has three primary utilities:

• Aegis Boost: Holders of $LSS can access enhanced services within the Aegis platform by staking, or holding tokens in their wallet.
• Protocol Reporting: $LSS holders can submit claims for investigations through the Lossless Protocol, helping to safeguard the broader ecosystem.
• Revenue Sharing: A portion of the revenue from successful protocol recoveries is shared with $LSS stakers, offering an additional incentive to hold and stake the token.

Roadmap and Future Targets

Lossless is continually reinvesting in R&D to expand its toolkit and enhance its security offerings. In the near future, Lossless aims to extend its range of services to new networks and ecosystems. The primary focus currently is expanding into Solana.

Additionally, Lossless plans to enhance its Aegis service by introducing wallet tagging capabilities. This feature will allow wallets that have been associated with malicious activity to be flagged on-chain, ensuring that DeFi protocols and contract scanners can issue warnings to users interacting with these wallets before signing any transactions.

Security Partnerships

Despite being a security service provider, Lossless understands the importance of securing its own contracts. To this end, the team has established partnerships with leading security auditors, including Solidproof and Hacken. Hacken conducted a thorough audit of Lossless’s smart contracts in 2021, and this audit was recently renewed to ensure continued protection.

Explore More

For those interested in learning more about Lossless, you can visit their website and explore their documentation. Stay updated by following Lossless on X and reading their blog posts.

Additionally, to stay up-to-date with SolidProof and future Business Panel discussions, follow us on X and check out our newly launched TrustNet.

Lossless continues to push the boundaries of what’s possible in blockchain security, making it an indispensable partner for projects and users seeking peace of mind in the ever-evolving world of Web3.