Last Updated on August 3, 2023 by Olga
What is the most important thing we at CoinRabbit are focused on? As a crypto lending service we believe that security and safety of clients’ funds is definitely the most important part of our job.
While being a fast and simple crypto lending solution, confidence about being as secure as possible at any moment of time is something we always keep in mind and constantly try to improve.
In this article we would like to share some insights about how we execute security of funds at CoinRabbit.
Without further interruption let’s take a closer look at CoinRabbit security: it’s layers and what is planned to be implemented later, external and internal security solutions, how do we keep the funds safe and everything else related to the topic.
Crypto Lending Security Explained
To keep the funds safe several security measures are used. All of them have their own unique purpose, and all together provide solid security of funds. Here is the list of solutions:
Risk Control System
To keep all the transactions secure and under control we have implemented several discrete mechanisms that are used to execute all the system operations:
- The first mechanism checks all the incoming transactions via its hash in the blockchain;
- The second executes all the additional and preliminary calculations and confirms all the economy to be correct up to all the decimals;
- The third confirms the data and signs it. If any hash sum divergence appears then system alerts occur;
- The fourth mechanism blocks all the system and automatically notifies core team members about an emergency accident to be solved.
Risk control system is our self-developed solution that automatically provides additional security layers for all the operations and transactions of our clients.
Additional Security Layers That Prevent Any ‘Shady’ Activity
All the funds are processed distinctively instead of being sent to the destination address instantly. We use a system that generates a unique safe address for all the transactions. Pending funds are checked to be legitimate (AML security level), and pass a blacklist security layer (the list of blacklisted addresses is being constantly updated).Passing KYC is optional since we believe that cryptocurrencies should provide people with a fast and easy access to financial operations. Nevertheless, if the transaction, wallet address or any other information looks suspicious the KYC becomes required.
Cold Wallets Based Storage
To keep clients’ funds safe we use a system of cold wallets. These wallets can be accessed exclusively by a few members of the team. Any kind of operations with the wallets should be approved by all the other members having the access before being executed. It provides an additional security layer. A part of the funds is always available for withdrawals at any moment of time. It is important for us to provide our clients with an opportunity to receive their collateral as soon as needed.
24/7 Customer Support Service
With all the security layers mentioned above we still have professional and accurate customer support service ready to help you with any occured problem at any moment of time let it be early morning or deep night.
What kind of tech is used to securely keep the crypto funds?
Along with previously mentioned security solutions and layers we also applied additional technologies to amplify the safety:
- Hetzner dedicated root server using ISO/IEC 27001:2013;
- CloudFlare provides us with CDN services, protection against DDoS attacks, secures access to resources and DNS servers and act as a reverse proxy for the website;
- SSL (Secure Sockets Layer) SSL certificate is a digital certificate that authenticates the website’s identity and enables an encrypted connection;
- AWS (Amazon Web Services) provides us with compute power, database storage, content delivery and various other functionalities;
- HTTPS (Hypertext Transfer Protocol Secure) additionally secures communication over a computer network;
- 2FA (Two-Factor Authentication) using Twilio is an electronic authentication method in which a user is granted access to a website or application only after successfully presenting two or more pieces of evidence (or factors) to an authentication mechanism;
- Geetest Captcha is a type of challenge-response test used in computing to determine whether or not the user is human.
Distinctive Moments of CoinRabbit Security
All the security measures such as cold wallet storage, risk control system, etc are common for both crypto loans and deposits. Although, those services have some specific features when it comes to their security since they are being stored quite distinctly from each other.
Crypto Savings Account
Crypto Savings Account lets you earn interest on your crypto, just like a regular bank savings account. The difference is that crypto services have a much higher interest rate.
Multisig Wallet
Multisignature (multisig) wallets are smart contracts that allow multiple signers to review and agree on an action on the blockchain before the action is executed.
In the case of CoinRabbit, Multisig Wallet is used for crypto deposits. In order to transfer crypto assets from our clients’ deposit, they have to make a request to copayers, or members who share owners rights, that will have to sign to approve the transaction. Even if one of the members loses the key or gets hacked, there will be other individuals that can approve the transaction instead. After getting everyone signed, the transaction will be made and the fund will be sent to the client’s wallet.
Crypto Backed Loans
When it comes to crypto backed loans, it should be noted that all the loans on CoinRabbit are backed by other cryptocurrencies which stand out as collaterals. By that we mean that all the clients, who have decided to take a loan, have to leave their crypto asset as a collateral.
Working with Binance Directly
We use the services of the largest cryptocurrency exchange Binance for the initial temporary cryptocurrency storage. Though the funds are being kept there only for a limited amount of time it is essential to work with the projects who already have earned its trust in the market and cryptocurrency sphere.
Protected High-Yield Passive Income
The essential part of our work is that all the loans we provide are backed by the collaterals. It is not a financial pyramid, and we do not provide cryptocurrency backed by a “thin air” or any other sort of “miracles”. Easy as that — one collateral backs one loan given out. It makes the whole system stable and rock-solid and protects the terms, APR (annual percentage rate) and other conditions of CoinRabbit loans from being changed on a daily basis.
What do we plan to implement to provide a deeper security?
While the whole process is highly secured there is a list of features that we plan to implement later to amplify the safety even more. Here is a short list of upcoming security improvements:
- Additional confirmation when logging to the loan page;
- BitGo-like insurance;
- Additional 2FA via authenticators
The CoinRabbit team is constantly focused on providing our clients with the best possible security of our services and solutions. While keeping in mind our main distinctive features such as speed and ease it is our main goal to remain one of the most secure crypto lending services on the market.
