Share this article
The American crypto exchange, Coinbase, has just released four requirements that projects must follow before earning a lucrative ERC-20 token listing on the platform.
Coinbase’s DeFi Listing Standards
Nadir Akhtar, a blockchain security engineer at Coinbase, wrote:
“To safeguard users, Coinbase performs a thorough security review of each token before it can be listed. One of the most commonly requested token categories is an Ethereum smart contract standard known as an ‘ERC-20.’”
Though Coinbase has an exhaustive list of 45 considerations, the latest security review only refers to four specific items.
Coinbase security experts demand projects have:
- Verified source code.
- Industry-standard library use.
- Limited scope for privileged roles.
- Simple, modular design.
While the security review is important, checking all the boxes does not guarantee a listing with the exchange. Developers must consider tokeneconomics, team experience, legal considerations, market demand for the token, and more to qualify for a Coinbase listing.
The release of this information in the face of growing DeFi interests is a clear sign that Coinbase is looking to list new and interesting ETH-based projects, as long as they fulfill these four.
The recent YAM debacle is a clear example of the importance of peer-reviewed source code and third-party smart contract audits. Akhtar also referenced the Parity hack as another one of the most acknowledged smart contract vulnerabilities.
These are, of course, just a few examples of the dangers and difficulties of developing in DeFi. And with this latest security announcement, it would appear that Coinbase is well aware of these risks.
Share this article
FTX Exchange, Not Coinbase, Has Been DeFi’s Greatest Proponent
As various market participants throughout the crypto space attempt to ride the coattails of DeFi, few have played the same role as derivatives exchange FTX. Though Coinbase has helped prop up prices,…