Zem Finance Security, Custodians, and Audits
Obligatory investor security post
Zem Finance is a platform dedicated to creating Web3’s largest hub for secure and well-curated index tokens. To achieve this, we have followed all audit and dox procedures.
Per Zem Finance’s development timeline, the goal for the platform’s management is to turn into a self-sustaining DAO that operates all index tokens, developments, roles, and products. This is why our development team retains semi-anonymity. When the transition to the DAO is fully completed, all relevant audit and dox procedures with the current Zem Finance team will be completely terminated and new procedures will be set by the DAO.
By our team ethos, none of these unfortunate events or procedures will ever come close to reality. For the same ethos, we’re ensuring all security and audit procedures to protect investors. The following information will be written in an unbiased manner, per legal, so investors clearly understand all procedures and security information.
Token Issuance
Zem Finance uses an audited token issuance platform to mint any Zem Finance related tokens. This made our token mint by default audited by both Certik and Hacken. We only use their platform for the token mint and do not centralize any other activities with them. The token is then integrated with our protocol’s smart contracts, liquidity, staking functions, and other various products. Utilizing a third-party platform gives our tokens by default audit-level security, as it is minted by audited contracts. We take this extra step in securing token issuance from the get-go to protect all investors. Issuing our tokens by ourselves takes a 1–6-month turnaround to self-audit leaving a large time window without proper investor security.
Asset Custodians
No Zem Finance assets are held by any one team member. All assets are held by our audited asset custodian firm which holds assets on Coinbase Custody. To move any assets, our team must create a joint asset request with purpose. Only after the custodian approves can assets be moved.
Exploits, Smart Contracts, and Bug Bounties
Zem Finance employs solid frameworks and proofreads with development consultants to make its smart contract work void of vulnerabilities. Despite these measures, there is always a non-zero chance of vulnerabilities existing. To counteract this, Zem Finance has set bug bounties to have Web3’s smart contract developer ecosystem constantly reviewing our work. In the case of a vulnerability event, Zem Finance will use all liquid assets to compensate investors.
Fraud Procedures
In the case of confirmed or suspected fraudulent activity by the Zem Finance platform, DAO, or team, our auditing firm will release full identity information (DOX) of all team members. To protect investor funds, the same auditing firm has a dedicated right-to-sue on behalf of investors to return any fraudulent funds that Zem Finance associated parties may own.
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We truly hope the measures we have taken are enough to make investors feel secure using the Zem Finance platform. Security is the foundation of a good relationship, and we believe true long-term growth comes from how investors feel interacting with you. Prioritizing security to this extent before we even launch is unorthodox in Web3 development culture, yet we felt the need due to the extended depth of our platform’s value and focus on community-oriented growth.
The Zem Finance Team.