AvengerDAO Report: Security Assessment and Risk Analysis

AvengerDAO is a community-driven initiative created to protect the users and projects on BNB Chain from malicious actors and activity. By actively identifying and flagging high-risk items through DappBay's Red Alarm, AvengerDAO publishes a comprehensive list of risk projects and addresses on a regular basis. This report aims to help Web3 users safely navigate BNB Chain dApps by providing detailed risk assessments, incident analysis, and security guidance.

Security Incidents

HashDit, an industry-leading blockchain security company and member of AvengerDAO, conducted comprehensive analysis of security threats on BNB Chain. During recent monitoring periods, significant security incidents were identified and documented. These incidents comprised multiple rugpull scams and smart contract vulnerabilities, collectively resulting in substantial financial losses to affected users.

The incidents included a fake LayerZero token rugpull causing $1.0 million in losses, a fake Frontfanz project scam resulting in $30,000 losses, GameTop Token rugpull with $155,000 in damages, and a Thales protocol vulnerability stemming from private key compromise causing $35,000 in losses. These cases demonstrate the diverse attack vectors used by malicious actors targeting the BNB Chain ecosystem.

Lessons Learned

Rugpull projects employ sophisticated deception tactics that exploit common user behaviors and ecosystem characteristics. Understanding these patterns is crucial for investors to protect their assets. One prevalent technique involves impersonating legitimate projects through fake project names and counterfeit token symbols. Scammers deliberately create a sense of urgency, pressuring users to make hasty investment decisions without proper verification.

In the LayerZero incident, attackers deployed a fake token, convincing users it was the official token launch. The fake token lacked official verification labels on blockchain explorers, while searching through market data platforms revealed that no official token had been deployed at that time. Users can protect themselves by consistently verifying correct website addresses and official contract addresses through trustworthy channels such as CoinMarketCap and CoinGecko. Additionally, checking blockchain explorers for official labels and tags provides an extra layer of verification before committing funds to any project.

Red Alarm Weekly Highlights

AvengerDAO's Red Alarm system identifies and categorizes emerging threats to BNB Chain users through systematic scanning and analysis. The system detects multiple categories of malicious dApps and addresses, providing users with actionable intelligence for informed decision-making.

Newly Detected High-Risk dApp Projects

Red Alarm detection identified high-risk projects across multiple scam categories. Ponzi and potential Ponzi schemes continue to pose significant threats, with projects flagged for employing deceptive practices that promise unrealistic returns to lure investors. These schemes rely on recruiting new participants to fund earlier investors, ultimately resulting in inevitable collapse.

Phishing dApps represent another critical threat vector, with multiple projects detected including those forging legitimate web interfaces to deceive users into revealing private keys or authorizing unauthorized transactions, directly compromising wallet security and asset control.

Newly Detected High-Risk Address

AvengerDAO members provide comprehensive API tools enabling users to assess contract security and identify associated risks before interaction. This proactive approach allows users to perform thorough due diligence on addresses they intend to engage with. Including address 0x4d1e90ab966ae26c778b2f9f365aa40abb13f53c, multiple high-risk addresses have been identified requiring immediate attention from the community. Users are strongly advised to regularly cross-reference addresses with AvengerDAO APIs when receiving airdrops or interacting with new smart contracts, ensuring informed participation in ecosystem activities.

Stay Safe - DYOR (Do Your Own Research)

Conducting independent research remains the most effective defense against scams and malicious projects. Users should not rely exclusively on social media channels and community forums for investment information, as these platforms are frequently compromised or manipulated by bad actors. Before interacting with any new project, users should search the project on Red Alarm to identify known risks and warnings.

A thorough DYOR process involves multiple verification steps including studying comprehensive project whitepapers, examining publicly available codebases, actively engaging with official community channels, and objectively assessing genuine market potential and use cases. Utilizing reliable third-party tools and authoritative sources is essential, including platforms such as CoinGecko, CoinMarketCap, blockchain explorers, reputable blockchain news outlets, official project documentation, and peer-reviewed academic research.

Protecting investments from scammers carries equal importance to identifying profitable opportunities. Users should adopt a cautious approach whenever doubt arises regarding project legitimacy, contract behavior, or transaction requirements. This risk-averse methodology, while potentially causing users to miss certain opportunities, prevents catastrophic financial losses from scam participation.

About AvengerDAO

AvengerDAO functions as a community-driven protection initiative designed to safeguard BNB Chain users from exploits, scams, and malicious actors. The initiative was established by founding members who recognized that as a major public blockchain, BNB Chain carries significant responsibility to protect its rapidly expanding user base. Given the scale and value flowing through the ecosystem, coordinated security efforts become increasingly critical.

The organization operates with two primary objectives: protecting users from financial losses caused by malicious contracts and scams, while simultaneously deterring malicious actors through transparent public notification and community awareness. AvengerDAO aims to enhance broader blockchain adoption by establishing industry standards for security best practices and cultivating comprehensive ecosystem-wide security consciousness. Through systematic threat detection, public disclosure, and user education, the initiative contributes to creating a safer and more trustworthy environment for all BNB Chain participants.

Conclusion

The AvengerDAO security assessment underscores the persistent and evolving threats facing BNB Chain users in an increasingly complex DeFi landscape. Through systematic security incident analysis, threat categorization, and user education, AvengerDAO provides essential protection mechanisms for community members. The identification of major security incidents, including rugpulls and smart contract vulnerabilities, demonstrates the necessity for continuous vigilance and research. By leveraging Red Alarm's threat detection capabilities, studying documented lessons from past incidents, and implementing rigorous DYOR methodologies, users can significantly reduce exposure to malicious projects. As BNB Chain continues expanding, community-driven initiatives like AvengerDAO become increasingly vital to maintaining ecosystem integrity and user confidence while establishing sustainable security standards for the broader blockchain industry.

FAQ

How to claim tokens via contract?

To claim tokens via contract, locate the claim function in the contract interface, execute the claim method with your wallet address, and confirm the transaction. Ensure you have sufficient gas fees.

How to find NFT address and ID?

View the contract address and Token ID in the NFT's details section on blockchain explorers like Etherscan or BSCscan. The contract address identifies the smart contract deployment, while the Token ID specifies the individual NFT within that collection.