Security

NEX takes a systematic approach to cryptocurrency security, employing a team of in-house and external cybersecurity experts to utilize the latest innovations and ensure the safety of our platform. We are transparent about our security practices and invite users to review part of our extensive on-chain testing by visiting our GitHub security page. Although a contract may be secure, it does not necessarily mean it cannot be exploited. For example, the Mango markets exploit on Solana demonstrated that an attacker can unexpectedly use the platform to exploit the system, despite the contract being secure. To address this issue, NEX adopts a multi-tiered approach that is uncommon in the cryptocurrency industry:

• Libraries: the basis of our smart contracts constitutes battle-tested libraries by OpenZeppelin.

• Smart Contract Restrictions: Each Smart contract has restricted availability to be upgraded, limited rights to the owners, and limited capability to modify critical variables. Even if someone were to steal NexLabs' private keys and become the owner, they would only be able to earn protocol fees from a single pair until users decide to no longer partake.

• Funds Security: The smart contract requires 1:1 backing by the underlying assets. When a mint/burn is initiated, automated and decentralized oracles are required to update the contract with both onchain and offchain sources. Users can verify these assets themselves in a decentralized manner, we give a read-only key to the CEX exchanges that may contain assets. For convenience, our front end site will also display asset backing with real time display.