Introducing IBC Rate Limiting to UX
Introducing IBC Rate Limiting to UX
As the cryptocurrency industry continues to grow, so does the risk of malicious traders and hackers compromising users' funds. In 2022 alone, more than $5,000,000,000 USD was stolen in crypto hacks, a figure that surpasses the GDP of 25 countries. To address this growing concern, UX, a decentralized lending and borrowing platform built on the Cosmos ecosystem, has implemented IBC rate limiting: a new security feature that sets a maximum net outflow of a crypto asset within a given period of time
The IBC rate limiting module aims to cap the possible losses of any malicious exploits or hacks. For example, with this implementation, a cap of $600k USD of $ATOM is allowed to flow out from the UX chain every 24 hours.
More specifically:
The current 24hr limit for $ATOM is $600K USD, with a total of $1M USD of the sum of all assets in outflows. Such a quota is reset every 24 hours to provide users with that added layer of security.
As users and traders, we all want liquidity and accessibility. At the same time, we want our funds to be secure. UX's IBC rate limiting feature aims to strike a balance between the two. It provides users the last resort under a security breach with a capped maximum loss while providing institutional traders the liquidity to make interchain transactions. In the case where the interchain transaction volume peaks momentarily, there may be a delay in processing the transactions. Our engineers are constantly parameterizing the perceived risks and liquidity ratios for different Cosmos tokens to find the right balance!
UX's new IBC rate limiting module is one of the new security feature releases. UX aims to provide users with the best lending and borrowing experience while keeping safety as its highest priority. Ultimately, this v4.2 upgrade leads to a better and safer UX.
IBC rate limiting feature is just one step of many in the right direction! We invite you to join us on this journey and stay connected with our official channels for more updates on UX. Together, we can build a more secure and accessible lending and borrowing ecosystem.