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Blockchain security platform Immunefi has introduced an on-chain mechanism for bug bounties, as stated in a Sept. 26 announcement. The newly launched system, referred to as “Vaults,” enables Web3 developers to secure funds in an on-chain address, which can then be utilized to compensate white hat hackers for identifying bugs.
Immunefi asserts that this new system will assist projects in “demonstrating to whitehats […] that they have set aside adequate funds to pay bounties,” with the expectation that this will lead to “an increase in high-quality bug reports” being submitted.
List of Immunefi bug bounties. Source: Immunefi
Software developers frequently provide incentives, known as “bug bounties,” to hackers who identify vulnerabilities or other issues within their software. This practice can help uncover weaknesses before malicious actors can exploit them. Hackers who report bugs for rewards rather than exploiting them are termed “white hat” hackers, while “black hat” hackers apply their skills for harmful purposes.
Related: Projects would rather get hacked than pay bounties, Web3 developer claims
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The announcement indicates that the new Immunefi system permits projects to allocate their bug bounty funds to a Safe multisig smart contract (previously known as a “Gnosis Safe”). This arrangement offers white hats on-chain verification that the funds are accessible. After a bug is reported and a project verifies its authenticity, the project can transfer the funds to the bug reporter’s wallet.
At the time of Vault’s launch, Ethereum infrastructure provider SSV made a $1 million deposit to support bug bounties for its software. The decentralized exchange Ref Finance, operating on the Near network, has also adopted the new system. SSV DAO contributor Eridian stated that on-chain bug bounties will enhance security for the DAO’s validator services, remarking:
“The Vaults System will help us provide added reassurance for any researcher engaging with our bounty program, and in turn help secure the protocol even further. A good win-win. Building further trust with the community by showcasing dedicated funding, and streamlining the payment process, will ultimately strengthen our security efforts.”
In December 2022, Immunefi reported that it had facilitated $66 million in bug bounty payouts since the platform’s launch. LayerZero issued a $15 million bug bounty through Immunefi on May 17.
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