Lossless - DeFi Hack Mitigation Tool at 10M Mcap
In June Lossless saved Stolen Tokens with a Value of ~$1M.
Lossless is silently building through the bear market and seems like a good low-cap pick for the longer term future. With @harmonyprotocol they recently won a big client for their main product βAegisβ. Price-wise $LSS is only up ~79% from All-Time-Low. If they can succeed to win more big protocols in the near future for their product, this should result in a higher token price and Mcap (Mcap is only ~10M, with a token price of $0.18 currently).
Before partnering with Harmonyprotocol some days ago, Lossless prevented a bridge exploit on the Harmonyprotocol in last June and saved 78M Stolen Tokens that were worth around $1M. At that time the CEO Vygandas Masilionis stated:
βThis success case is proof that our team is working in the right direction while building solutions for web3 security.
It might be the first prevented hack, but definitely not the last. Which motivates us to continue building our soon upcoming products like the Security Oracle which will help in detecting hacks before they even happen.β
This is also the main problem the Lossless protocol is solving:
βLossless protocol implements an additional layer of blockchain transaction security for ERC-20 standard tokens, mitigating the financial impact of smart contract exploits and private key theft.β
Now Harmonyprotocol is relaunching its bridge and will apply Aegis to its smart contract monitoring. According to the team, Aegis is the first product of Lossless that will provide Lossless with revenue.
Strengthened Token Utility
Until now the Token Utility of Lossless was not particularly strong, it was mainly used for Staking (Staking is not live yet and should come in the future) and voting.
But that is changing. The $LSS token will get more utility in the near future, as the team announced recently. Companies using Aegis will have the possibility to pay with $LSS and receiving a discount. This could result in a higher demand for $LSS Token if they manage to get some big customers on board. It is important to know, that Aegis is only since 1 month available on the market. So chances are there, that we will see more adoption in the upcoming months.
Experienced Team and recent Cooperation with Stanford
The team consists of experienced cybersecurity specialists, blockchain engineers, finance professionals, and white-hat hackers. Some weeks ago the team also announced a cooperation with some researchers from Stanford. They also hired a new developer this month.
57% Increase in Token Holders
Not only is the product evolving, also more people are buying the $LSS token and are holding it. As the company stated, they had a token holder growth rate of 57% since January this year.
82.5M of 100M Total Tokens Unlocked / 57M circulating
The supply of LSS is expected to be fully vested by May 2023. The TGE for LSS was in 2021, June 3rd. The last private round unlock was in June 2022 (Private Investors are up 2.51x, as they bought the token at $0.077).
There are only monthly token unlocks for the team, advisors and treasury left. Precisely every month from now on, tokens with a current value of ~$550.000 will be unlocked (represents daily volume of ~5 days). It does not mean that all those tokens will be directly dumped on the market, but some of them will, resulting in a sell pressure.
Investment thesis:
The value proposition of LSS is big and they seem to be on the right way in becoming the leading DeFi Hack Mitigation Tool. That should give them - in the longer term - a significantly higher valuation than the 10M Mcap they have now.
While the Token Holders increased with 57% since beginning of the year, the price dropped significantly until May and is since than hovering in the area between $0.10 and $0.25. I would like to get some tokens at a price as close as possible to the private sale ($0.077) as there have been very much tokens sold in the private round (35M / 35 % of total supply).
Links:
Harmony Hack: How Lossless Saved 78M Stolen Tokens: https://beincrypto.com/harmony-hack-how-lossless-saved-78m-stolen-tokens
Tokenomics: https://losslessdefi.medium.com/your-guide-to-lossless-tokenomics-85fd49be2ea5
Website: https://lossless.io/