Cryptocurrency exchange Coinbase announced this week four key requirements for the exchange to list DeFi tokens.

The exchange stated that in order to protect users, Coinbase will conduct a thorough security review of each token before listing on the exchange. Especially for the various ERC-20 tokens that have been emerging under the recent DeFi boom.

The four key points mentioned by Coinbase security experts are: verified source code, use of industry standard libraries, limited range of privileged accounts, and simple modular design.

Coinbase believes that “if the source code is not accessible, the auditor or security engineer will not be able to analyze the behavior of the token, and therefore cannot conduct a highly feasible deepening. For the asset issuer, the verification code is the most important way for the token to be listed and traded. Effective steps.”

Ways to verify the code include uploading the source code of the smart contract to a reliable platform, adding the code to a repository that is easy to share, and using a different release version for each upgrade.

Coinbase recommends that developers “try to avoid writing smart contract code from scratch”, because regardless of experience, a single developer or team may omit key details, thereby compromising the integrity of the token. So in contrast, using the popular and rigorously vetted open source smart contract standard library is the safest known implementation for developing smart contracts.

Many smart contracts have “administrator” accounts such as super users, which have the ability to suspend transactions, modify balances, or completely change token logic. Coinbase believes that the existence of these super users will reduce the possibility of the token being listed on Coinbase.

Coinbase said that although complex protocols can enable the advanced features of the token, the token itself does not need to be complicated. Reducing the complexity of the token can minimize the possibility of token failure.

In addition, Coinbase also stated that meeting these requirements is not a sufficient condition for listing and trading on an exchange. It will also consider the economy of the token, team experience, legal factors and market demand.