Nadir Akhtar, a blockchain security engineer at Coinbase, wrote:
“To safeguard users, Coinbase performs a thorough security review of each token before it can be listed. One of the most commonly requested token categories is an Ethereum smart contract standard known as an ‘ERC-20.’”
Though Coinbase has an exhaustive list of 45 considerations, the latest security review only refers to four specific items.
Coinbase security experts demand projects have:
Verified source code.
Industry-standard library use.
Limited scope for privileged roles.
Simple, modular design.
While the security review is important, checking all the boxes does not guarantee a listing with the exchange. Developers must consider tokeneconomics, team experience, legal considerations, market demand for the token, and more to qualify for a Coinbase listing.
The release of this information in the face of growing DeFi interests is a clear sign that Coinbase is looking to list new and interesting ETH-based projects, as long as they fulfill these four.
The recent YAM debacle is a clear example of the importance of peer-reviewed source code and third-party smart contract audits. Akhtar also referenced the Parity hack as another one of the most acknowledged smart contract vulnerabilities.
These are, of course, just a few examples of the dangers and difficulties of developing in DeFi. And with this latest security announcement, it would appear that Coinbase is well aware of these risks.
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