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CryptoSafe: Securing a $500M DeFi Protocol

How we conducted a comprehensive security audit and refactoring for a major DeFi protocol, securing over $500M in Total Value Locked.

Sparkable Team

Sparkable Team

Product Team

December 20, 2023
CryptoSafe: Securing a $500M DeFi Protocol
Blockchain & Web3 BlockTrust

The Challenge

BlockTrust, a rising star in the Decentralized Finance (DeFi) space, was preparing to launch their V2 lending protocol. With a target Total Value Locked (TVL) of over $500 million, the stakes were incredibly high. In the volatile world of Web3, a single vulnerability could lead to catastrophic loss of user funds and instantaneous reputational collapse.

They needed a partner who could look beyond standard automated scans and understand the complex economic logic and game-theoretic attack vectors inherent in their smart contracts.

Our Approach

Our team of senior solidity engineers and security researchers conducted a 6-week intensive audit and refactoring phase.

1. Architectural Analysis

We started by mapping out the entire protocol interaction flow. We identified potential bottlenecks in the liquidity pool logic and spotted a reentrancy vulnerability that had slipped past initial internal reviews.

2. Manual Code Review & Formal Verification

We didn’t just rely on tools. We performed line-by-line manual analysis of over 5,000 lines of Solidity code. We employed formal verification methods to mathematically prove the correctness of critical accounting functions.

3. Optimization & Refactoring

Security doesn’t have to come at the cost of efficiency. We refactored the gas-heavy functions, resulting in a 30% reduction in gas costs for end-users, making the protocol more competitive in the market.

Key Technologies

  • Solidity 0.8.x: Leveraging the latest security features and overflow protection.
  • Hardhat & Foundry: For robust testing environments and fuzzing.
  • Slither & MythX: Advanced static analysis tools.
  • OpenZeppelin: Industry-standard secure contract libraries.

The Results

The launch of BlockTrust V2 was a resounding success.

  • $500M+ TVL Secured: The protocol successfully handled millions in daily volume without a single security incident.
  • Zero Critical Exploits: In the 12 months post-launch, no funds have been lost to hacks.
  • 30% Gas Savings: Users saved an estimated $50,000 in transaction fees in the first month alone.

“Sparkable didn’t just audit our code; they improved our entire architecture. Their insights into gas optimization and economic security were invaluable.” — Alex Chen, CTO of BlockTrust

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