MakerDAO has announced that it will start paying a bounty of up to $10 million to white hat hackers and cybersecurity experts who can identify valid security concerns in its smart contracts.
To minimize monetary losses, Immunefi’s largest bug bounty to yet intends to assist MakerDAO in identifying potential vulnerabilities in its smart contracts and apps.
On the Ethereum blockchain, the Maker Protocol is one of the largest and first decentralized finance applications (Dapps). Users can manufacture Dai using the Maker Protocol, commonly known as the Multi-Collateral Dai (MCD) system, by leveraging collateral assets allowed by “Maker Governance.” Dai is a soft-pegged cryptocurrency that is decentralized, unbiased, and collateral-backed.
The Maker Protocol is run by people all around the world who own MKR, the protocol’s governance token. To ensure the Protocol’s stability, transparency, and efficiency, MKR holders oversee the Protocol and Dai’s financial risks. One vote is equal to one MKR token locked in a voting contract. Maker Governance is the community-run and operated method for administering the Maker Protocol’s different elements. Due to its minimal volatility, Dai is resistant to hyperinflation and provides economic freedom and opportunity to anybody, anywhere.
Maker’s (MAKER) plan to prevent front-running attacks on its smart contracts is the largest ever on Immunefi’s bug bounty program. In fact, if the entire lot was claimed, it would equal the total sum of $10 million paid out by Immunefi so far from active and inactive events. According to the company’s website, the defects discovered have prevented up to $20 billion in hacking losses.
Whitehat hackers might profit from rewards starting from $1,000 for low-level flaws to a maximum of $10 million for significant flaws discovered in Maker’s smart contracts and apps. DAI stablecoins will be used to make the payouts. Olympus DAO’s bug bounty of $3.3 million is the next highest on Immunefi.
MakerDAO is the community that controls how Maker’s cash is collateralized and spent. According to coinmarketcap, DAI is the fifth most valuable stable coin, with a market cap of $9.7 billion.
The Maker Foundation had previously overseen portions of Maker’s governance before its CEO and creator, Rune Christensen, announced the foundation’s dissolution in July 2021, allowing the DAO to become “totally self-sufficient.”
Travin Keith, a co-founder of Immunefi, said in a statement on February 11 that
“We’re excited to announce one of the core pillars of our mandate, which is to start and manage a bug bounty program to assist MakerDAO in maintaining its security.“
This new bug bounty comes as smart contract exploits appear to be on the rise, with hundreds of millions of dollars in losses in just the last two weeks. Hackers used a smart contract exploit to withdraw over $10 million from Dego Finance.