To the DeFi community,
This week, Ethereum scaling solution Optimism paid a $2 million bug bounty for the discovery of a bug that would have allowed users to double spend and generate an unlimited amount of tokens without backing. The exploit has been patched, and bug bounties yet again prove one of the most valuable resources for early-stage protocols where security is paramount.
Last week, I discovered (and reported) a critical bug (which has been fully patched) in @optimismPBC (a “layer 2 scaling solution” for Ethereum) that would have allowed an attacker to print arbitrary quantity of tokens, for which I won a $2,000,042 bounty. https://t.co/J6KOlU8aSW
— Jay Freeman (saurik) (@saurik) February 10, 2022
Competing scaling solution Polygon announced a private sale of $450m MATIC tokens to investors including Sequoia Capital India, Softbank, and Galaxy Digital. The funds will go towards helping Ethereum maintain its status as the dominant smart contract execution blockchain, and helping Polygon build out a suite of services to become the ‘AWS of Web3’.
#Polygon is now backed by the best. It’s truly reflective of the common vision of the many in making web3 the choice of the billions.#WAGMI💜https://t.co/LgG1OSRvEz
— Polygon | $MATIC 💜 (@0xPolygon) February 7, 2022
Ssv.network (Secret-shared-validator) announced a $10 million fundraise led by Digital Currency Group and Coinbase. Ssv aims to provide a decentralized staking solution for nodes to support the Ethereum consensus layer (formerly Eth 2.0) and will use the fund for collaborations and to fund grants for developers and network participants.
.@ssv_network, a decentralized staking protocol for Ethereum’s consensus layer, has raised $10 million to expand its platform ahead of the blockchain’s merge to Proof-of-Stake. https://t.co/slXEFxP6wE
— Crypto Briefing (@Crypto_Briefing) February 8, 2022
And MakerDAO launched a $10 million bug bounty program of their own by way of leading crypto security firm Immunifi. Bug reports and payments don’t require KYC, and the program will pay out a maximum of up to $10 million for a critical security bug found in the live smart contracts of the protocol.
MakerDAO & Immunefi Security Core Unit launch LARGEST Bug Bounty for DeFi!@ImmunefiSecCU : Security Core unit for @MakerDAO, who launches their $10M bug bounty program on Immunefi!
Immunefi (@immunefi): leading bug bounty platform for blockchain. https://t.co/BQhNze72JN
— Immunefi (@immunefi) February 10, 2022
DeFi hacks are still a common occurrence, which shouldn’t be a big surprise for a less than five year old industry built using entirely new underlying technology. But the headlines do little to validate the notion of DeFi as ‘the future of finance’, and those protocols that have been impacted by a major exploit are likely to face a significantly tougher battle being adopted by institutional finance organizations where such losses could mean the end…
Read More: defirate.com