Hats Finance Joins Cointelegraph Accelerator to Boost Web3 Security with Innovative Audits
Summary:
Hats Finance, a community-centric platform that allows on-chain audit contests and bug bounties, joins the Cointelegraph Accelerator program. It aims to improve Web3 security by providing scalable and innovative smart contracts audits through decentralized competitions. It also offers a results-focused model and encourages community involvement. Its unique pay-for-results approach only charges a fee if a vulnerability is detected during the audit, effectively cutting resource waste and promoting audits across projects. The platform also houses a bug bounty program that rewards the first valid submission for each bug. Armed with nearly $4 million in seed funding, Hats Finance is pushing to scale its offerings and create a sustainable system of continuous, autonomous security for Web3 projects.
Hats Finance, a platform that centers around community involvement and offers on-chain audit contests and bug bounties, has been welcomed into the Cointelegraph Accelerator programme. The basis of decentralized finance (DeFi) is smart contracts - these miniature programs automate and enact on-chain contracts. With this in mind, it's critical to regularly audit and remove any weaknesses to safeguard against attacks, ensuring smooth functioning for associated decentralized apps (DApp) and Web3 in general.
However, data shows that only 44% of Web3 projects underwent smart contract audits in the first quarter of 2024. Neglecting audits can result in significant security threats, as most compromised projects lacked audits. As smart contracts grow increasingly complex due to emerging use cases like real-world assets (RWAs) and module wallets, there's a greater need for efficient audits than ever before.
Traditional audits don't quite meet the rapid and diverse requirements of a Web3 environment, potentially posing as a deterrent for prospective projects. These audits involve a restricted group of auditors or one team, increasing the chances of missing vulnerabilities. Typically, these processes take weeks or even months, causing unnecessary delays in launching critical updates or features.
The average cost of an audit can range from $5,000 to $15,000, with large-scale and complex projects likely facing a six-figure audit expense. Astonishingly, payments are obligatory even if no weaknesses are discovered. A plausible solution to this problem could be to crowdsource smart contract audits.
Hats Finance is a decentralized Web3 security protocol that aims to elevate Web3 security with scalable and inventive audits, a results-focused model, and community involvement. To address issues common with traditional audits, this platform offers decentralized audit contests that boost Web3 safety for everyone involved.
Projects seeking to uphold the integrity of their codebase can utilize Hats Finance to initiate permissionless and automatic audit competitions. These can be arranged without any need for prior scheduling or legalities, letting them outline the scope, rules, and potential rewards for auditors. Security researchers are then invited to meticulously inspect any submitted codes.
A fast setup process and the involvement of a multitude of auditors significantly speeds up the time from detecting vulnerabilities to applying patches, compared to traditional methods. For security researchers, Hats provides an environment where they can openly compete for substantial rewards while enhancing the security of client projects. Successful submissions can place auditors on the platform’s leaderboard, bolstering their reputation in the Web3 ecosystem.
Hats Finance is unique in being the only auditing platform that offers a pay-for-results model. A 20% payout fee is only charged if the audit offers value and finds a vulnerability. This model prevents resource wastage and promotes audits for projects while incentivising security researchers and assures a higher level of quality assurance in return.
Furthermore, Hats Finance also offers a bug bounty program. After documenting, giving access to the codebase, disclosing previously identified vulnerabilities, setting up communication channels, and creating a vault, projects can launch their own bug bounty program. The first one to submit each bug (excluding centralization issues or those requiring leaked keys) is rewarded with tokens from the related projects.
Having received almost $4 million in seed funding, Hats Finance will utilize this for the following round. The platform presently hosts 500 active security researchers and organizes four competitions a month, intending to double this to eight monthly contests before the third quarter.
By effectively integrating the community into the auditing process and reducing cost and the need for qualified auditors, Hats Finance strives to provide continuous, autonomous security for Web3 projects. You can learn more about Hats Finance on their website.
Published At
6/5/2024 8:00:00 PM
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