We are thrilled to announce the launch of D-Mizar's first feature, the Mizar Token Sniffer. This powerful tool empowers traders to research token security, identify honeypots, detect scams, and much more, all free of charge.
The Importance of Verifying Token Smart Contracts Before Purchasing
Revealing the Hidden Scams within Solidity Functions
Introducing the Key Features of Mizar Token Sniffer for Scam Detection
Attention DeFi traders, Mizar has now embraced the world of DeFi! You might have noticed a new small switch option on the dashboard navbar. With this, you can switch between C-Mizar (CeFi trading bots and copy trading) and D-Mizar, the DeFi version of Mizar.
The first D-Mizar product released is the Token Sniffer, which you can use for free here. The Token Sniffer is a dashboard that helps you check smart contract security, find scams, and protect your funds while trading.
DeFi traders know how easy it is to fall into an honeypot trap. While the freedom offered by decentralized finance has its merits, it also presents some downsides. In fact, as anyone can launch a new token at any time, scammers now have a golden opportunity to exploit investors by stealing their funds or orchestrate even larger community scams.
When buying new and exotic tokens, due diligence is crucial. DYOD (do your own due diligence) is a necessary step before purchasing a token. It involves examining the project, testing if possible, scrutinizing the team, evaluating the community, and more. However, that's not enough.
Scams can hide within the smart contract itself. Tokens on blockchains like Ethereum function as smart contracts with self-written rules based on ERC-20 standards. While most rules may be sound, scammers can embed complex functions that are hard to understand.
Let's delve into some examples.
A common scam known as a honeypot involves a token (a smart contract) that cannot be sold. There are different types of honeypot, and they can be created for example by developing a contract that allows investors to buy but cannot sell. Another variation is when investors can buy but are only allowed to sell after a cool-down period of five years or more.
Another example involves tokens with exorbitant taxes. Image to buy $100 worth of a “ScamToken” on Uniswap, only to discover that $99 is deducted as a purchase fee, leaving you with a mere $1. We challenge you to recover your initial investment through price action!
Numerous other scam scenarios exist, all manipulable within the smart contract. While these details are technically visible, they can be difficult to be understood, and deciphering them often necessitates familiarity with the Solidity programming language.
That's why Mizar team created a free tool and built an advanced simulation environment using an ethereum node infrastructure and a mempool analyser on the ethereum network. We conduct tests on tokens, both existing and upcoming, by simulating token purchases and sales to carefully observe the results. If Mizar's anti-scam simulation bot can execute transactions perfectly, it means the contract is secure. Otherwise, Mizar investigates the problem to find the underlying cause.
The Token Sniffer dashboard displays all the security checks, making it easy to see if a token is safe or not. Below, you will find the main security checks conducted by Mizar:
Honeypot Checker: Verifying whether a token is a honeypot
Buy and Sell Taxes: Assessing the taxes associated with the smart contract
Max Buy and Sell: Determining if there are limits on the transaction amounts
Max Wallet Amount: Verifying if there is a maximum limit on a single wallet's holdings
Contract Control: Checking for any centralization in the contract's creator or owner
Contract Renouncement: Verifying if the developers have renounced the contract
Contract Verification: Confirming if the contract is open source
Liquidity Level: Assessing the contract's liquidity level to ensure optimal trading with minimal slippage
Should any of the above checks raise suspicions, Mizar promptly notifies you during the search. Furthermore, you can access additional details about the contract's creator and owner, including their available balance and wallet address. For advanced traders, Mizar also displays the MethodID of the smart contracts, offering hints about associated methods. If you have sufficient expertise, you can access the Solidity code and personally verify the functions.
Mizar also offers more common details like liquidity pools, deployed liquidity, market cap, and other important data. For more detailed information, you can refer to our documentation here.
To summarize, we are extremely excited to introduce our first and groundbreaking feature, which is publicly available and free of charge. This tool provides a vital edge for your coin investments, protecting your assets from potential scams and supporting you in creating your sniper bot