LosslessPrice

(LSS)

Lossless functions by having project owners integrate the LERC20 token standard into their smart contracts. This specialized code allows the protocol to temporarily pause suspicious transactions for a window of 24 to 48 hours while an investigation takes place. To prevent abuse, a permanent recovery requires a 2/3 majority vote from a Decision-Making Body consisting of the project owner, the Lossless team, and an independent Security Committee.

LSS is a utility and governance token essential for protocol operations. It is used by 'Finders' who must stake tokens to report hacks and by holders to vote on whether frozen transactions are legitimate. Additionally, the token provides incentives, as successful reporters earn a portion of the recovered funds (typically 7%). Under the LSS Boost plan, staking or holding LSS also grants users access to professional-grade security monitoring tools.

To submit a report and freeze a suspicious transaction, a user (Finder) must stake 2,500 LSS. This staking mechanism ensures that reports are made in good faith. If the report is verified as a legitimate hack by the Decision-Making Body, the Finder is rewarded. However, if the report is proven to be false or malicious, the staked LSS is confiscated through a process known as slashing.

Lossless is designed to support both new and established projects. While new tokens can integrate the LERC20 standard at launch, existing projects can utilize the Lossless Wrapper or the Token Relaunch Toolkit. These tools allow older tokens to be 'wrapped' into a protected version that adheres to the LERC20 standard, enabling them to access the protocol’s monitoring and recovery features without a complete migration.

Lossless addresses the philosophical debate of decentralization by arguing that pure 'code is law' lacks protection against massive theft. To ensure a system of checks and balances, the protocol does not give any single party total control. Instead, it employs a 3-party voting system. No transaction can be permanently reversed without a consensus among the project owners, the Lossless team, and an independent Security Committee, preventing centralized misuse of the freeze function.

Aegis is a real-time monitoring tool that scans for smart contract vulnerabilities and suspicious wallet behavior, providing alerts before hacks occur. The Cyber Cell initiative is a 2024 strategy that utilizes non-transferable NFTs to tag and track hacker wallets across the ecosystem. These tools, combined with support for major EVM-compatible chains like Ethereum and BNB Chain, form a proactive defense layer for the Web3 space.