Lossless 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. Lossless Protocol utilises community-driven threat identification tools and a unique stake-based reporting system to identify suspicious transactions, providing real-time protection.
Lossless Protocol is basically a piece of code that token creators insert into their tokens. This code empowers Lossless to freeze any fraudulent transaction based on a set of fraud identification parameters.
The Lossless project builds upon the popular ERC20 standard to include security features. This Lossless core functionality (aka LERC20 standard) relies on the $LSS token. On Ethereum, the $LSS token can be staked by anyone to point out a hack and initiate its review. The review of the transaction can then lead to its reversal and to return of the hacked funds to the rightful owner.