Compound Finance, a decentralized lending platform, has announced the launch of a program valued at up to $1 million in collaboration with blockchain security firm Immunefi.
This initiative strengthens the protocol’s security by rewarding researchers for identifying vulnerabilities.
In the announcement, Immunefi emphasized that the rewards for reporting bugs would depend on their severity. Critical issues could earn payouts of up to $1 million, while less severe vulnerabilities would receive smaller rewards starting at $1,000. All payouts will be made in COMP, the native token of Compound Finance, demonstrating its commitment to a robust and transparent DeFi ecosystem.
According to ImmuneFi’s Q2 2024 report, losses from hacks and rug-pulls reached $573 million, more than double the amount reported in Q2 2023. Of the total loss in Q2 2024, $564,238,811 was lost to attacks across 53 specific incidents, while $8,450,050 was looted via fraud across 19 given incidents.
Compound Finance, established in 2017 by Robert Leshner and Geoffrey Hayes, is a cryptocurrency borrowing and lending platform. It has received investments from prominent firms like Andreessen Horowitz, Bain Capital Ventures, and Polychain Capital and operates on multiple blockchains, including Ethereum, Polygon, and Arbitrum.
This security push comes amid a security breach of Compound Finance’s website. On July 11, blockchain security firm PeckShield Alert reported the compromise via an X post, warning users to avoid the site, which had been turned into a phishing platform. Michael Lewellen, Compound Finance’s Security Advisor, confirmed the attack and reassured users that the protocol and associated smart contracts remained secure while the website had been affected.
The community’s response to the website hijacking was mixed, with users concerned about asset risks while others appreciated the team’s prompt announcement. Ignat Shapkin, co-founder of Ylide protocol, noted this was the second security breach in six months and urged operational changes.
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
