AvengerDAO Weekly Security Report

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 helps users identify high-risk BNB Chain dApps with detailed risk levels, descriptions, and other important risk details. This comprehensive approach enables Web3 users to safely navigate BNB Chain dApps while maintaining security awareness.

Security Incidents

During recent blockchain security monitoring, the blockchain security ecosystem continues to experience significant challenges. HashDit, an industry-leading blockchain security company and member of AvengerDAO, reported multiple security incidents on BNB Chain. These incidents comprised various attack vectors including hacks and rugpulls, resulting in substantial financial losses across multiple protocols.

Notable incidents have affected various projects including Defilabs, IEGT, and Palmswap. Other projects impacted include USDP, LayerZero, POPEYE, and VDON. Additionally, flashloan attacks have affected Carson, SUT, and PuppyDoge. These incidents demonstrate the diverse attack vectors used by malicious actors in the ecosystem.

Lessons Learned

Rugpull projects employ sophisticated tactics to attract liquidity by incentivizing users to provide funds to liquidity pools, enabling token trading and market activity. However, malicious actors ultimately intend to drain liquidity and steal user funds. A critical lesson from these incidents is the importance of thorough due diligence before investing.

Users can leverage DappBay's Risk Scanner to identify potential rug-pull risks before committing capital. HashDit emphasizes that understanding the mechanisms of rugpull schemes is essential for protecting investments. Common warning signs include unsustainable yield promises, anonymous development teams, lack of transparent documentation, and rapidly increasing token supplies. By recognizing these red flags and utilizing available security tools, investors can significantly reduce their exposure to such scams.

Red Alarm Weekly Highlights

AvengerDAO publishes comprehensive lists of risk projects and addresses on DappBay Red Alarm on a regular basis. This regular publication provides the BNB Chain community with up-to-date intelligence on emerging threats and suspicious activities. The Red Alarm system serves as a critical information resource for users conducting security assessments of dApps and smart contracts.

Newly Detected High-Risk dApp Projects

Recent scans have identified numerous high-risk dApp projects across multiple categories, reflecting diverse attack vectors and scam methodologies:

Ponzi or Potential Ponzi dApps lure investors with false promises of extremely high returns. Potential Ponzi schemes continue to be identified through ongoing monitoring.

Phishing dApps forge legitimate web pages to trick users into entering private keys or authorizing transactions they don't understand. Detected projects include various fraudulent interfaces targeting unsuspecting users.

Honeypot dApps trap users' cryptocurrency by enabling only the scammer's wallet to withdraw funds. Users discover the trap only when attempting withdrawals, finding themselves unable to access their assets.

Backdoor Methods represent purposefully built weak spots in smart contracts designed to bypass security measures. Projects with potential backdoor vulnerabilities continue to be flagged through regular monitoring.

Unverified Contracts make it difficult for users to analyze source code and conduct due diligence. Projects with unverified contracts are flagged, though users should note that contract verification may be in progress.

Imposter dApps involve scammers creating fake dApps with identical names, logos, and descriptions to legitimate projects, but with different underlying contracts. Such fraudulent projects are regularly identified through security scanning.

Newly Detected High-Risk Address

AvengerDAO members provide APIs to check contract security and evaluate addresses for potential risks. These tools enable users to perform comprehensive due diligence before interacting with smart contracts or receiving airdrops. Regular scans identify multiple high-risk addresses requiring user awareness and caution.

Latest Risk Remediation - TVL >1M$ Projects

AvengerDAO actively scans high TVL (Total Value Locked) projects for potential vulnerabilities. Through ongoing monitoring, TVL projects with potential risks continue to be identified and remediated. The majority of identified issues stem from inadequate multi-signature wallet configurations, which are critical for protecting large pools of capital.

AvengerDAO recommends projects study the Web3 Risk Framework to implement best practices in security management. Proper multi-sig wallet setup, combined with regular security audits and transparent governance structures, significantly enhances protocol security and user confidence.

Stay Safe - DYOR (Do Your Own Research)

The BNB Chain community has published detailed guides for crypto users to identify scam projects. Implementing these research best practices is essential for navigating the ecosystem safely:

Do not rely solely on social media channels and forums for investment information. Malicious actors actively spread misinformation through these channels. Always search new projects on Red Alarm and other trusted security platforms before interacting with them.

Conduct thorough due diligence by studying the project's whitepaper, checking its publicly available codebase, engaging with the community, and assessing market potential through platforms like CoinMarketCap. This multi-faceted approach reveals inconsistencies and red flags that single-source analysis might miss.

Use reliable tools and sources including CoinMarketCap, CoinGecko, Etherscan, reputable news outlets, official project websites, and academic articles. Cross-referencing information across multiple trusted sources provides better contextual understanding and helps verify project legitimacy.

Always err on the side of caution when in doubt. Protecting investments from scammers is as important as identifying lucrative opportunities. Conservative risk management protects long-term portfolio health and prevents catastrophic losses.

Conclusion

The AvengerDAO security report underscores the ongoing security challenges facing the BNB Chain ecosystem. With continued significant incidents being reported, the importance of community-driven security initiatives cannot be overstated. By providing detailed risk intelligence through DappBay Red Alarm, offering security scanning APIs, and promoting education about scam identification, AvengerDAO empowers users to make informed decisions.

The diversity of attack vectors—from sophisticated rugpulls and phishing schemes to honeypots and backdoored contracts—demonstrates that no single security measure suffices. Users must combine multiple protective strategies: leveraging security tools like the Risk Scanner, conducting thorough research following DYOR principles, verifying contract details through platforms like CoinMarketCap, and maintaining healthy skepticism toward unsustainable promises. Through collective vigilance and continued emphasis on security best practices, the BNB Chain community can create a safer ecosystem that protects legitimate users while deterring malicious actors.

FAQ

What is PalmSwap and how does it work?

PalmSwap is a decentralized leveraged trading platform utilizing synthetic architecture for efficient liquidity. It enables users to execute on-chain trades with leverage while maintaining their positions without needing to exit.

How to buy PalmSwap tokens?

Create an account on a major exchange, purchase a stablecoin like USDT, then swap it for PALM tokens. You can also use decentralized exchanges to trade directly.