Security
Protecting Users and Assets
Last updated
Protecting Users and Assets
Last updated
At the heart of DePhaser's security architecture is its use of smart contracts, which automate the entire process of minting and redeeming JPYT.
Smart contracts ensure that the platform operates without the need for manual intervention, reducing the risk of human error and vulnerabilities that could be exploited by bad actors.
All USDT lock-ins, JPYT minting, and fund transfers are handled through decentralized, self-executing smart contracts.
This not only streamlines operations but also guarantees that transactions are executed exactly as coded, with no possibility of manipulation or fraud.
The transparency of these smart contracts means that anyone can inspect the code, further reinforcing trust in the system’s reliability.
One of the key security measures of DePhaser is that DePhaser itself does not hold or store user funds. Instead, all USDT that users lock into the platform is immediately and automatically transferred to AAVE, a leading decentralized lending protocol.
AAVE is a highly secure, battle-tested protocol known for its rigorous security standards. It employs its own set of advanced security features, including:
Decentralized storage of assets, meaning funds are not held by a single entity or vulnerable to centralized failures.
Audited smart contracts, which ensure that funds are handled securely and transactions are executed as intended.
Insurance pools and safety mechanisms that help protect against unforeseen events or platform vulnerabilities.
By leveraging AAVE’s trusted infrastructure, DePhaser ensures that users’ USDT is stored in a highly secure and decentralized environment, further minimizing risk.
DePhaser integrates a trusted external oracle to provide real-time market data for the exchange rate between USDT and the Japanese Yen.
This ensures that every minting session of JPYT is based on the most up-to-date and accurate market information, making the platform both secure and transparent.
The use of an external oracle mitigates the risk of price manipulation or discrepancies in exchange rates.
Oracles serve as a bridge between blockchain-based smart contracts and off-chain data, providing accurate and tamper-proof price feeds. This ensures that users can trust the conversion rates shown at the time of their transaction.
Every transaction conducted on DePhaser, from the locking of USDT to the minting of JPYT and the burning of JPYT during redemption, is recorded on the blockchain.
Blockchain technology provides an immutable, tamper-proof ledger that tracks every action on the platform, ensuring full transparency and accountability.
Because these transactions are stored on a decentralized ledger, they are:
Immutable: Once recorded, they cannot be altered or deleted.
Auditable: Anyone can view the transaction history on the blockchain, making the process fully transparent.
Secure: Transactions on the blockchain are protected by cryptographic methods, making them resistant to hacking and fraud.
This transparency helps build trust in the platform, as users can verify all transactions independently.
DePhaser operates as a non-custodial platform, meaning that it never directly holds user assets. Once users lock in USDT, those funds are immediately transferred to AAVE's decentralized storage.
DePhaser functions as a "middle hub," facilitating the minting and burning of JPYT through smart contracts, but without ever controlling or having access to user funds.
This decentralized architecture eliminates single points of failure, ensuring that:
No centralized entity can seize or compromise user funds.
The system operates autonomously, following predefined smart contract rules that cannot be altered or interfered with by any individual or organization.
In this non-custodial environment, users retain full control over their assets, further enhancing the security and trustworthiness of the platform.
