Hats Finance Joins Cointelegraph Accelerator for Community-Centric Blockchain Audits
3 min read
Hats Finance Joins Cointelegraph Accelerator for Community-Centric Blockchain Audits
has revealed that Hats Finance, a platform designed to facilitate community-driven on-chain audit competitions and bug bounty initiatives, has become a part of the Accelerator program. Within the realm of decentralized finance (DeFi), smart contracts serve as crucial components — they are essentially small programs that automate and enforce on-chain agreements. Regular audits are imperative to identify and mitigate vulnerabilities within these contracts, ensuring the seamless operation of decentralized applications (DApps) and the wider Web3 ecosystem. Alarmingly, reports from the first quarter of 2024 indicate that a mere 44% of Web3 projects had undergone smart contract audits. Projects that opt out of such critical audits often expose themselves to significant security risks, with a majority of hacked projects lacking prior audits. As smart contracts become increasingly intricate, especially with new applications like real-world assets (RWAs) and modular wallets, the necessity for comprehensive audits intensifies.
Traditional audits often fail to meet the needs of the dynamic and varied Web3 environment. They typically depend on a limited pool of auditors or even a single team, which heightens the chances of missing potential vulnerabilities. Such audits can be time-consuming, often taking weeks or months and delaying the introduction of essential updates or features. Financially, these audits can range from $5,000 to $15,000 for standard projects, while more complex and extensive audits can easily surpass six figures. Fees are incurred even if no vulnerabilities are detected, making this model both inefficient and discouraging for many projects.
Crowdsourcing audits, Can offer a viable alternative. Hats Finance aims to revolutionize Web3 security through a decentralized protocol that emphasizes scalable, innovative audits, a results-oriented model, and active community involvement. Identifying and addressing the inherent issues of traditional audits, Hats Finance conducts decentralized audit competitions to enhance the safety of Web3 initiatives. Projects looking to safeguard their codebase can employ Hats Finance to initiate permissionless, automated audit contests. These competitions are straightforward to set up, requiring no pre-scheduling or legal formalities, and allow projects to define specific scopes, rules, and rewards for auditors.
Security researchers are then invited to rigorously examine the submitted codes. The expedited setup and the collective effort of numerous auditors mean vulnerabilities are detected and patched significantly faster compared to traditional audits. For the security researchers, the platform offers a transparent, competitive environment where they can earn considerable rewards while boosting the security of client projects. Successful audits not only provide monetary rewards but also help researchers climb the platform’s leaderboard, enhancing their reputation within the Web3 space.
A notable feature of Hats Finance is its unique pay-for-results model, which stands out in the auditing arena. A 20% payout fee is only levied when an audit successfully identifies a vulnerability, ensuring that resources are not wasted on useless audits. This model encourages audits by offering palpable incentives to security researchers and assures a higher level of quality assurance for projects.
In addition to audit competitions, the platform also runs a bug bounty program. For projects to launch their bug bounty initiatives, they must first document their codebase, disclose any known vulnerabilities, set up communication channels, and create a vault. The first submissions for each bug, barring centralization issues or those requiring leaked keys, are rewarded with tokens from the relevant projects.
Hats Finance has successfully secured nearly $4 million in seed funding, which will be used to gear up for subsequent fundraising rounds. Currently, the platform boasts around 500 active security researchers, conducts four competitions monthly, and aims to double that number before the third quarter. By effectively integrating the community into the audit process and minimizing entry barriers like costs and access to qualified auditors, Hats Finance is on a mission to enable continuous and autonomous security for Web3 projects.
Smart contracts need more secure environments, and Hats Finance is leading the way. Fantastic news!
It’s great to see platforms like Hats Finance bridging security gaps in DeFi. This is a huge win!
Such a great initiative! Hats Finance is making a real difference by enhancing security through community involvement. 🌐🛡
The Accelerator program is lucky to have Hats Finance on board. Their approach is truly groundbreaking!
Reading about traditional audit costs versus Hats Finance’s methods—I’m not convinced their model will really save significant resources in the long run. 💰🤨
Innovative auditing solutions from Hats Finance are set to redefine Web3 security. Thrilled for them!
Hats Finances unique pay-for-results model is exactly what we need in auditing. Exciting times for DeFi security!
Incredible progress! Hats Finance’s unique approach to auditing can revolutionize the security landscape for DApps.
Hats Finance is revolutionizing the auditing process with their community-driven model. Great news for the Web3 ecosystem!
Hats Finance’s approach to security audits is innovative and much needed in the dynamic Web3 space. Bravo! 👏🚀
The idea sounds great in theory, but can a decentralized audit truly provide the security we need? I’m skeptical.
With only 500 active researchers, how thorough can these audits really be? Major concerns about scalability remain.
Hats Finance’s inclusion in the Accelerator program is a major win for Web3 security. Excited to see their continued impact!
Big congrats to Hats Finance! Their work on decentralized audits is crucial for the secure growth of DeFi.
Fantastic development! Hats Finance is truly paving the way for safer smart contracts and DApps. 🌟🔧
Community-driven security initiatives like Hats Finance are critical for the growth of Web3. Well done!
Hats Finance continues to impress with its dedication to decentralized security. Keep up the great work! 💪🔒
A decentralized approach to auditing like Hats Finance’s is exactly what Web3 needs. Exciting times ahead!
So glad to see Hats Finance receiving recognition and support. Their approach to decentralized audits is exactly what we need in this space!
The future of Web3 security looks brighter with platforms like Hats Finance leading the charge. Amazing news!
Hats Finance needs to prove they can spot vulnerabilities better than traditional methods before I’d ever jump on board. 📊🤷♂️
Relying too much on the community might lead to inconsistent security results. Centralized oversight is essential in such critical areas.
Amazing milestone for Hats Finance! Their innovative audit model is a breath of fresh air for the industry.
Funding is great, but real-world application and proof of concept matter more. Do we have any concrete successes so far? 🤷♀️❓
Exciting to see Hats Finance’s efforts getting the recognition they deserve. This is a win for all of us! 🎉🚀
Hats Finance is setting new standards in the auditing world. Their innovative approach is much needed in Web3.
As much as I like the pay-for-results model, it feels quite exploitative and unreliable for consistent security standards. 🚩😒
Consentless and automated audit competitions sound like a recipe for disaster. Who’s accountable if something goes wrong? 🤷♀️💥
The leaderboard concept seems game-ified; could this divert focus from genuinely securing projects to just climbing ranks?
The “no pre-scheduling or legal formalities” pitch sounds like a shortcut to disaster. Legalities are there for a reason, folks. ⚖️🚫
Who ensures that all these ‘security researchers’ are qualified? Quality over quantity must be a focus here, and I’m not seeing it.
Hats Finance boasting about $4 million in funding doesn’t necessarily translate to effective security. We’ve seen money thrown at worse concepts.
Glad to see Hats Finance pushing the envelope in Web3 security. Looking forward to more of their innovations!
I read the article, and I have to say, I’m not convinced. Is Hats Finance really ready to tackle the complexities of smart contract audits? 🤔📉
Just because it’s decentralized doesn’t automatically mean it’s better. We need solid proof of improved security outcomes here. 🤔🔍
Impressive work by Hats Finance! Their decentralized audit competitions are setting new standards in the industry.
Hats Finance is making smart contracts safer one audit at a time. Kudos to the team!
Thrilled to see Hats Finance pushing the boundaries of decentralized security. This is going to benefit everyone in Web3!