Compound Finance Launches $1M Bug Bounty Program on Immunefi

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As a seasoned crypto investor with a knack for spotting potential and a penchant for security, I find Compound Finance’s recent move to launch a $1 million bug bounty program nothing short of brilliant. Having witnessed the turbulent ride that DeFi has been on, I appreciate the proactive approach towards enhancing security in this rapidly growing sector.

As an analyst, I’m excited to share that Compound Finance, a key player in the Decentralized Finance (DeFi) landscape, has embarked on a mission to bolster its security. This strategic move comes after they partnered with Immunefi to initiate a $1 million reward program for finding and reporting software bugs.

As stated in the post on Immunefi’s Medium blog, the goal of the program is to significantly enhance the safety of Compound’s algorithmic interest rate platform. This is done by inviting security specialists to find and report vulnerabilities. What sets this apart is that these professionals are also compensated for their contributions in ensuring the platform’s security.

Critical Vulnerabilities Could Earn Researchers Up to $1 Million in Bug Bounty Program

In the recent announcement, I outlined that our program will provide incentives commensurate with the perceived risk associated with each disclosed vulnerability. Essentially, the more severe the reported issue, the greater the potential reward.

According to the Immunefi’s Vulnerability Severity Classification System Version 2.3, the risks fall into four distinct categories. Consequently, the reward levels are divided into four as well.

As a researcher, I’ll be diving into our bounty program, which offers rewards based on the severity of the vulnerabilities discovered. For instance, those that pose minimal risk, classified as low-level vulnerabilities, will net me a reward of $1,000. If I happen to find mid-tier issues, commonly known as medium-level vulnerabilities, my earnings can go up to a maximum of $5,000.

In this category, we find high-level vulnerabilities. These are situations where money is either stolen or frozen, and skilled professionals can potentially earn between $10,000 and $50,000. However, the exact amount depends on the possible extent of damage and the value of the funds at risk.

To sum up, there’s the significant category called “critical vulnerability level.” It offers rewards ranging from $1 million or 10% of affected funds, whichever is less, but a minimum payout of $50,000 is guaranteed to motivate prompt reporting of critical problems.

Additionally, Compound has admitted that under certain circumstances, it’s possible for repeated attacks to exploit critical vulnerabilities. This occurs when the affected smart contract cannot be halted or updated.

In these situations, Compound clarifies that it determines the compensation by considering the entire accumulated loss to the funds.

Payment in COMP Tokens, Says Compound Finance

The Compound DAO will manage the distribution of bug bounty payments, but it’s important to note that these rewards are valued in USD. However, Compound has mentioned that the actual payouts will be made in their native token, COMP. Here’s a quick look at its current status:

The business additionally tackled the matter of price fluctuations. They stated that they would convert USD into COMP using the average price listed on both CoinMarketCap and CoinGecko when the report is submitted as a reference point.

In summary, it seems that Compound Finance’s bug bounty program is an exceptional approach. This strategy undoubtedly encourages researchers to report problems quickly and helps avoid unnecessary damages.

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2024-12-12 13:51