Security services platform Immunefi is now offering a new bug bounty program for OlympusDAO, a hotly-discussed decentralized finance (DeFi) protocol underpinning a cryptocurrency called OHM.
OHM is marketed as a free-floating reserve currency, which means that it is backed by a basket of different assets rather than a fiat currency.
This “free-floating” feature also means that the OHM token is subject to extreme bouts of volatility often seen in traditional cryptocurrencies like Bitcoin or Ethereum, however—despite some doubts—the project has quickly gained traction since its inception in March 2021.
Backed by heavy meme culture and a strong community, OlympusDAO stands out among other DeFi projects thanks to its innovative tokenomics, which aims to control supply expansion through a host of novel solutions.
Why DeFi Projects Are Flocking to OlympusDAO Bonding
Decrypting DeFi is Decrypt's DeFi email newsletter. (art: Grant Kempster) In a heated Senate hearing on stablecoins this past week, one name came up far more than anyone in crypto would have expected: OlympusDAO and its OHM stablecoin. OHM is a so-called stablecoin that, unlike other stablecoins, is not pegged to a fiat currency. Its price has declined sharply recently, but that hasn’t stopped a slew of DeFi projects from partnering with OlympusDAO because they want to tap its white-label liquid...
These include protocol-managed treasury of assets, protocol-owned liquidity, a staking rewards structure with up to 4,640% APY and a unique bonding mechanism.
The latter is designed to offer OHM at a discount to its current market value in exchange for liquidity pool tokens issued to participants providing liquidity to decentralized exchanges (DEXs) like SushiSwap or Uniswap.
“Olympus has a goal of becoming the reserve asset for all of DeFi,” said OlympusDAO bug bounty manager Proof Of Steve in a press release seen by Decrypt. “To achieve that, we need to ensure its security, and that’s exactly why the community authorized this bug bounty program with Immunefi.”
What is Immunefi?
Immunefi, which raised $5.5 million in funding in October last year, is a popular bug bounty platform for smart contracts and Defi projects.
Projects that chose Immunefi to host their bug bounty programs include Synthetix, Chainlink, SushiSwap, PancakeSwap, Bancor, Cream Finance, Compound, Alchemix, Nexus Mutual, and others.
To date, the firm has paid out over $8 million in rewards to white hat hackers working on discovering and disclosing possible vulnerabilities in protocols. The platform’s largest payout was $2 million awarded to a security researcher who found a critical vulnerability in the Polygon Plasma Bridge last year.
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Polygon, a scalability solution for Ethereum, has awarded a $2 million bounty to a white hat hacker after they identified a vulnerability that put about $850 million of capital at risk. According to the bug bounty and security services platform Immunefi, which hosts Polygon’s bounty program, this is the highest bounty ever paid in the world of decentralized finance (DeFi). The vulnerability, found by Gerhard Wagner in the Polygon Plasma Bridge on October 5, allowed an attacker to exit their burn...
With its bug bounty program launch, OlympusDAO aims to prevent loss of treasury, user, and bond funds, and is willing to splash out up to $3.3 million in rewards for those who help.
“Well-run bug bounty programs continue to be the most proven and effective solution for protecting crypto protocols and user funds locked in their contracts,” said Mitchell Amador, founder and CEO of Immunefi.
He added that OlympusDAO shares Immunefi’s “mission of shaping the DeFi industry towards security and transparency.”
Like other projects, the OlympusDAO bug bounty program is structured to rank vulnerability threats based on various severity criteria, such as identifying the consequence of exploitation or likelihood of a successful exploit.
