Since recently appearing on the scene, Binance Smart Chain has become a real hit. It provides the opportunity to farm coins without heavy Gas fees, not to mention the convenience of LP token movement. But like any other new technology, the network isn’t devoid of vulnerabilities. Right from the start, hackers managed to find and exploit such vulnerabilities. The notorious cases of Meerkat Finance, Zap Finance and Tin Finance prove that it’s too early to rely on this blockchain. 

Founders find ways to get away with users’ money, so the only way of protecting your funds is to keep them in your wallet. ‘How would I stake them then?’ - you might ask. Shadow Staking on BSC makes it possible! 

Hackers Never Sleep

What exactly draws hackers to Binance Smart Chain? It’s simple. They penetrate the spheres where big money is evolving. The number of users on BSC has grown over the recent months in geometric progression:

Source: bscscan

Binance Smart Chain has become the fastest-growing dApp ecosystem, which means that the projects, pools and coins within its ecosystem will collectively attract billions of dollars. 

Source: coinmarketcap 

Yet, the growing popularity of BSC projects has its downsides. Since the network is new, so too are the projects based on it. It means that smart contracts haven’t gone through the test of time yet and there are still many vulnerabilities the project team isn’t aware of. The case of Meerkat Finance proves that. 

Despite secure blockchain-based core algorithms, IT projects are still vulnerable. Hackers manage to steal funds by addressing the weaknesses of the system, the process of implementation and human errors. Most often, they utilize:

• Phishing
• By-passing 2FA (two-factor authentication)
• Users’ ignorance of security measures

The latter concerns all of us - the security of our funds is in our hands. 

How to Prevent Hacking

The risk of hacking is ever present, no matter which you prefer - conventional banking, buying cryptocurrencies or farming on alternative blockchains. However, there’s a lot you can do to keep funds safe and secure.

Here are a few safety tips for Binance Smart Chain users:

• Do your own research. Pay attention to the whitelist, the innovational value of the project and the team behind it. If you see that a platform is created by anonymous people, be aware: they can get away with money and never be caught. 
• Enable 2FA and keep your password strong. To prevent access to your account, activate two-factor authentication and make sure you generate a very strong password. Don’t forget to go through the KYC procedure and connect your mobile phone. 
• Use the official links only. Make sure you visit the official platform with its URL spelled correctly. Otherwise, hackers will get your login and password. 
• Check the wallet address. When making a deposit or withdrawal, ensure that the address you’ve pasted is exactly the same as what you’ve just copied. 
• Buy a hardware wallet. While this advice isn’t applicable to farming, a hardware wallet is the best solution for long-term cold storage. 

There’s one more thing you can do to ensure safe farming on Binance Smart Chain - use Shadow Staking by SpaceSwap.

Shadow Staking - your tokens stay forever yours

Being one of the first DeFi projects around, SpaceSwap got started by providing access to Uniswap-like pools. Instead of copying the Uniswap smart contract, they created a proprietary one. It was meticulously checked for vulnerabilities and bugs. Today, SpaceSwap is a fully-fledged DeFi platform that offers native tokens (MILK2 and SHAKE) and a bunch of useful services:

• Interstellar (staking on DeFi pools)
• Booster (multiplier of farming rewards)
• Gravity (stablecoin farming)
• NFTs
• Blockchain Bridge (exchange of ERC-20 and BEP-20 tokens)
• Index tokens

Unlike other DeFi projects around, SpaceSwap puts the focus on user security right from the start. This is how the idea of Shadow Staking technology was born. 

Shadow Staking allows users to stake LP tokens in pools without moving them to SpaceSwap’s smart contract. As a result, farmers don’t have to pay extra Gas fees for coin transfers and their tokens stay in their wallets. So even if hackers compromise SpaceSwap, they won’t get access to staked LP tokens. All genius is simplistic! 

Shadow Staking offers the following advantages:

• Gas fees are close to zero
• The process of staking includes fewer steps, so it becomes a matter of a few clicks
• Tokens stay in the user’s wallet - no one can access them
• Rewards can be harvested at any moment
• It applies to each and every LP token in the present pools

Initially, Shadow Staking was introduced for farming via Uniswap. During this time, no attacks or hacks occurred - users’ LP tokens were stored in their wallets. This technology has stood the test of time! That’s why SpaceSwap has decided to do the same on the Binance Smart Chain. Feel free to use this technology - farm without fuss or worries.

Bottom Line

Decentralized Finance creates unlimited opportunities for cryptocurrency enthusiasts. However, with big earnings come big threats. Hackers are relentlessly searching for ways to compromise blockchain security. Shadow Staking is one case where keeping all of your eggs in one basket actually makes sense. Don’t spread your LP tokens over different smart contracts - store them in a safe wallet and continue earning farming rewards. It’s absolutely secure and saves you Gas fees.