When integrating your product with DeFi protocols, security must be a top priority. Don’t rely on external security assumptionsā€”take full control to protect your users. Here are five crucial tips to ensure a safe and secure integration with DeFi protocols:

1. Approve Exact Token Amounts

Always specify the exact amount of tokens needed for transfers and avoid using type(uint256).max. Granting excessive permissions can open doors for potential hacks. By approving exact amounts, you minimize risks and tighten security around token handling.

2. Test Integrations Thoroughly on Protocol Forks

Before going live, rigorously test integrations on a fork of the protocol. Developers sometimes make incorrect assumptions about how a protocol operates, introducing vulnerabilities. For example, a critical bug in a well-tested protocol was caused by inaccurate testing with mock contracts instead of real protocol forks. Testing on forks helps uncover hidden issues and ensures robustness.

3. Verify Results with Invariants

After integration, itā€™s crucial to verify that the results match your expectations. Implement and check invariants to ensure accuracy. For example, when depositing assets into a vault, confirm that assetDeposited == convertToAssets(shareMinted) (assuming no fees). Invariants help guarantee that your integration behaves as expected and protects against manipulation.

4. Avoid Hardcoding External Data

Avoid hardcoding critical information like addresses or other external protocol data, as these values may change over time. Hardcoded data can lead to broken integrations if protocols update their details. Instead, adopt dynamic solutions to manage this data, ensuring flexibility and future-proofing your product.

5. Take Full Ownership of Security

Never fully rely on the security of external protocols. By implementing these practices, you safeguard your users and maintain control over your product’s security. Full ownership ensures that you’re not leaving vulnerabilities unchecked.

Ready to Secure Your DeFi Protocol?

If you’re building a DeFi protocol, donā€™t take risks with your security!
Book a comprehensive security audit with A2 Security today!!