Coinbase Sets Up New Rules For Listing DeFi Tokens

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American crypto exchange has named four requirements that projects should adher to before earning a lucrative ERC-20 token listing on the platform.

“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,” Nadir Akhtar, a blockchain security engineer at Coinbase said.

Coinbase had a long list of 45 things to be taken into consideration but as of now they have made four specifications.

  • Verified source code.
  • Industry-standard library use.
  • Limited scope for privileged roles.
  • Simple, modular design.

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.