- SushiSwap has partnered with GoPlus Security.
- The new partnership promises to offer a proactive response to scam tokens.
- SushiSwap intends to make DeFi safer for everyone.
Given the right tools, almost anyone can create an Ethereum ERC-20 token in 15 minutes. While this ease lowers the barrier to entry and supports experimentation and innovation, it also makes it easy for malicious actors to launch scam tokens, exposing users, particularly on decentralized exchanges, to a greater risk of asset losses.
To tackle this challenge, leading DEX SushiSwap has joined forces with Binance-backed GoPlus Security in a move that promises to save millions in user losses.
SushiSwap Takes a Proactive Approach to User Safety
Seeking to protect users from honeypots (a contract designed to divert assets to an exploiter) and scam tokens, on Thursday, May 23, SushiSwap announced that it had integrated GoPlus Security’s Token Security API.
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Typically, anyone can list an ERC-20 token against a counterparty token like WETH or USDC for trading on automated market-making (AMM) platforms like SushiSwap, which do not require permissions from a centralized authority. Due to the lack of checks, malicious tokens are often only labeled after several users have already lost their money.
By integrating GoPlus’ API, SushiSwap is taking a proactive approach to preventing user losses. As explained by the firm in a press release seen by DailyCoin, GoPlus would screen each new token for risks to detect scam tokens and honeypots early.
According to the firm, malicious tokens will be immediately labeled, generating pop-up warnings when users try to interact with them. SushiSwap intends to protect users from losses through these early warnings.
Making DeFi Safer for Everyone
Commenting on the GoPlus API integration, Sushi Head Chef Jared Grey asserted that the partnership addressed “one of the biggest concerns for newcomers” in DeFi.
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"At Sushi, we're all about giving you the best DEXperience, and keeping our users safe is a big part of that. By teaming up with GoPlus Security to flag honeypot and scam tokens, we're addressing one of the biggest concerns for newcomers—security,” Grey noted.
He further asserted that partnership with GoPlus highlighted how collaboration between protocols could make DeFi safer for everyone.
“This partnership not only enhances our product offerings but also shows how DeFi protocols can work together to make the space safer and more awesome for everyone—another great DeFi Lego best practice in action," he added.
Prioritizing user safety will likely be paramount to the continued success of SushiSwap.The protocol boasts a TVL of $371.38 million per Defi Llama data at the time of writing.
On the Flipside
- No system is infallible, so users must still conduct due diligence before investing in or trading any token despite SushiSwap’s GoPlus integration.
- In April 2024, the SushiSwap team came under fire for a proposal that would have placed the project’s entire treasury under the control of only core team members instead of the DAO.
Why This Matters
Crypto honeypots and scam tokens have cost users millions of dollars over the years. The ease of creating new tokens makes scam tokens and honeypots popular options for bad actors, with DEXes like SushiSwap usually serving as the ideal playing ground. SushiSwap’s move to integrate GoPlus Security promises to offer much-needed checks to help prevent user losses.
Read this for more on honeypot scams:
Beware of Ondo Finance Honeypot Tokens: How to Stay Safe
Learn more about Buterin’s continued use of Railgun:
Ethereum’s Vitalik Continues Railgun Romance with $300K Move
