In this article, we will discuss the safety and security of the Bolide Finance DeFi yield aggregator. Specifically, we will delve into the key safety measures the platform has implemented to secure its customer assets and information. Additionally, the article looks into some ways to stay safe while using the platform.
About Bolide Finance Yield Aggregator
What is Bolide Finance?
The current list of supported assets is:
- USD Tether (USDT);
- USD Coin (USDC);
- Binance USD (BUSD);
- DAI Stablecoin (DAI-MATIC);
- Bitcoin (BTC);
- Ethereum (ETH).
Additionally, the platform also supports its native digital asset, dubbed BLID token, based on the popular Ethereum and BNB Smart Chain blockchains.
User deposits on the above assets are held within publicly known smart contracts, which are then deployed according to various strategies. The strategies include
- Staking -this strategy enables an investor to lock their assets within a smart contract for a specified period, following which they earn a return according to the protocol or service’s reward rate. On Bolide Finance, users are given the option to stake their BLID tokens, which they have earned from investing in the various vaults, including Bitcoin, Ethereum, and stablecoins such as USDT or USDC;
- Yield farming – through this strategy, Bolide aims to deploy users’ funds in two main ways – lending and provision of liquidity to decentralized exchanges (DEXes). The platform first provides funds to lending protocols such as Venus and Ola. Thereafter, DEXes borrow these funds from the lending protocols at a fee to ensure the availability of liquidity within their platforms.
As a result, Bolide makes returns in the form of fees from lending protocols and DEXes. These returns are shared with the depositors in the form of BLID tokens, which earners can then stake to further boost their returns with high APY rates offered by Bolide.
Watch the video: How Bolide Finance Works
Bolide Finance’s Credibility in the Industry
Yield aggregation in the cryptocurrency industry is a relatively new proposition, and Bolide Finance is among the notable names pushing the envelope in this regard. The yield optimization platform was launched in November 2021 and so far has managed to attract more than $6.5 million in deposits or total value locked (TVL).
Additionally, the company has attracted a wide network of industry partners ranging from DEXes to liquidity pool firms. Some examples include Zerion, 1Inch, BiSwap, ApeSwap, DexTools, Nomics, and LaserDesk, among several others.
Finally, it is worth noting that in its one year of operation since its launch, the team behind the aggregator has managed to achieve every milestone as projected within its roadmap. Milestones such as the launch of BLID tokens, the MVP, the official product launch, token airdrop, seed funding, the launch of the whitepaper, and the initiation of a smart contract audit were all achieved in good time as projected.
What Makes Bolide Finance Safe?
In the time relatively short time since its launch, Bolide Finance aggregator has not reported any security incident, which is a testament to the robust security features the platform has implemented.
The biggest safety feature is the implementation of self-custody. Users on the platform do not have to store their idle assets on the platform. Bolide.fi only requires them to connect their self-custody wallet to the platform via a wallet connect feature.
For instance, if someone has installed the MetaMask wallet extension on their browser, they can access the aggregator, connect their wallet directly, and use it as an account instead of creating a new one on the platform. This process is efficient and safer for the users and the platform, as depositors directly control their funds.
Additionally, users are not at risk of information theft because there are no compliance provisions for signup and KYC (know your customer). The only information at risk is the wallet address and the contents within the wallet.
The platform has, however, taken extra steps to ensure it offers its users a safe and secure environment to make profitable investments. These measures are discussed in the following section.
Key Safety Measures
Bolide Finance has managed to stay safe throughout its existence by implementing the following safety and security measures:
Website security
One of the most basic security measures any online platform can put in place is to ensure that its website visitors are protected using a secure SSL certificate. You can check whether a website has an SSL certificate by checking your website address bar for “HTTPS:” rather than “HTTP:” Also, most browsers will display a locked padlock symbol next to the address to signify that the website is secure.
An SSL-secure website ensures that data and information shared between the website and your browser are encrypted, and third parties are excluded from accessing it.
Platform Transparency
Bolide Finance has taken extra measures to ensure that its users can confirm the validity of the platform by being transparent about its operations. For instance, it has uploaded its smart contracts to a public portal on the popular GitHub developer platform where anyone can easily access and audit the code.
Additionally, Bolide.fi is very open about its strategies while investing customer funds. We know that once an individual makes a deposit, their funds are either invested in staking protocols or yield farming pools. All rewards earned from the various third-party protocols are converted into the native BLID token before being distributed to the depositors.
The aggregator also reveals the platforms with which it has partnered and the potential rate of return from each investment.
Risk mitigation
Bolide.fi has taken several measures into consideration to ensure that it reduces investment and market risks that could adversely affect its customers. For instance, despite the potentially higher returns from investing in less established assets, the platform only supports popular and well-established ones, including Bitcoin and leading stablecoins USDT and USDC.
In terms of partners, the yield aggregator has also opted to work with well-established platforms such as leading DEXes UniSwap, and PancakeSwap, among others. Dealing with recognizable and well-established brands reduces investment risks for funds deposited with these partners.
Smart Contract Security Audit
According to reports released by Bolide Finance, the yield optimizer underwent Hacken’s smart contract security audit between March and June 2022. The audit exercise is designed to assess the security of the smart contract before it is deployed to the public.
The Hacken audit was done on the three investment smart contracts used by Bolide Finance and based on four categories which are:
- Quality of documentation;
- The code quality;
- Quality of the code architecture;
- General security.
The report was released in July 2022, showing that all three smart contracts are relatively secure. Scored on a scale of 1-10, two of them averaged a 9.6 score, while one got a 9.5.
Besides the fact that the platform has scored high-security grades according to a reputable audit firm, the effort by the yield aggregator to hire an independent security firm proves its dedication to protecting investors’ funds. In cryptocurrency, it is critical that any network or application that seeks to handle digital assets be audited and certified.
How to secure your Crypto wallet
Even though Bolide Finance has taken several measures to ensure that its users enjoy their services in a safe and secure environment, it is equally important for the users to protect their assets off the platform. We mentioned earlier that the platform only connects to browser-installed wallets such as MetaMask or Coinbase Wallet, and therefore, the following initiatives are recommended to ensure that your funds are safe while using Bolide.fi:
- Avoid connecting to multiple decentralized applications (dApps) while using Bolide.fi. Depending on the settings used on your wallet software, it may be possible for some dApps to pick up transaction data or even intercept communication;
- Always back up your wallet keys in a secure and easily accessible place, such as offline on a piece of paper. Avoid keeping your keys online in remote storage services such as Google Drive and copying them to your clipboard to unlock a wallet while connected to several other dApps;
- Create multiple accounts within your wallet for usage across various dApps if you interact with several of these services. By doing so, you segregate your funds and limit the amount of information any specific dApp has on you. Additionally, if you connect to a malicious application, you also limit the amount at risk to a portion of your funds;
- Do not share your private key with anyone, and avoid using it anywhere except when recovering your wallet.
Bolide Finance’s customer support
Bolide Finance maintains several support channels and forums to ensure that users’ and community members’ concerns are addressed effectively. You can reach out or find further information about the yield aggregator through the following links:
- Whitepaper documentation: https://docs.bolide.fi/
- Website: https://bolide.fi/
- Bolide.fi app: https://app.bolide.fi/
- Blog: https://blog.bolide.fi/
- Forum: https://forum.bolide.fi/
- GitHub: https://github.com/bolide-fi/
- Reddit: https://www.reddit.com/user/bolide-fi
- Twitter: https://twitter.com/Bolide_fi
- Telegram: https://t.me/bolidechat
- Discord: https://discord.gg/bolide-invite
- YouTube: https://www.youtube.com/channel/UC-G8ur0y3_YnCJva3Ic3vkw
- TikTok: https://www.tiktok.com/@bolide.fi?lang=en
Final thoughts
Yield farming, staking, lending, and several other Defi services are growing in popularity by the day, which means more options for investors. However, the increase of platforms increases the time taken by each investor undertaking research to unearth opportunities.
That is where yield optimization service providers such as Bolide Finance come into play. Bolide takes all the hustle out of the investing process for most investors while maximizing returns.
However, it is important to consider a platform’s security as part of the research process. Hopefully, this article has shed some light on the measures Bolide has put in place to secure its systems and users’ funds.
Always perform your research to ascertain information and ensure that an investment platform meets your requirements before depositing your hard-earned money.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
Frequently Asked Questions on Bolide Finance
What is Bolide Finance?
Bolide Finance is a decentralized finance (DeFi) yield aggregator that accepts deposits from users and invests the funds in multiple places in search of the highest returns for the investors. In the case of Bolide, it invests funds across DeFi yield pools, lending protocols, and staking platforms.
What is a yield aggregator?
A yield aggregator is a service that comps through the vast yield farming protocols and services within the cryptocurrency investment market to find opportunities of earning the highest returns for your capital. These services are becoming increasingly popular as yield farming opportunities rise as well.
Is Bolide Finance safe?
Bolide Finance is relatively safe, according to our research. The platform has existed for more than a year with no security incidents reported. This could be partially due to the platform’s active investments in measures that limit investment risks and increase the safety and security of its systems and its users.
What is a smart contract security audit?
A smart contract security audit is an exercise conducted to identify security vulnerabilities within a smart contract. It can be performed internally within a company that is building the contract or externally by an independent auditor. It is recommended that both parties are involved, especially for an external auditor who brings with them the added advantage of an outsider’s perspective.
