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Balancer Labs Announces Bug Bounty for over $2 Million

Balancer Labs Announces Bug Bounty for over $2 Million

According to recent reports, Balancer Labs has advocated a bug bounty for any ethical hacker who helps them discover vulnerabilities in their V2 Vault. The company, which operates as a liquidity provider and non-custodial portfolio manager, provides a significant single-bug bounty on record. Moreover, the top prize is 1,000 ETH or $2.2 million at the time of writing. Balancer desires to promote ethical hackers to discover vulnerabilities of V2. 

The V2 Vault is a single vault that manages and maintains assets placed in the platform. Furthermore, it intends to simplify transactions and decrease gas fees once introduced. The company’s website states the rate of vulnerabilities on a scale from “critical” to “low,” with significant severity reports getting 1000 ETH and low severity reports receiving 5 ETH. Further, some instances of critical vulnerabilities involve draining or permanently locking fundamental funds in Vault. In contrast, less critical vulnerabilities involve minor rounding faults that allow an attacker to manipulate balances to their benefit.

DeFi Platforms Experiencing Various Exploits

The attraction to be cautious for Balancer comes after its experience of a cyberattack on its platform in June 2020. Hackers tricked the protocols into dumping a half-million dollars in tokens after finding a method to handle the intelligent contract. Balancer Labs is not the unique DeFi platform to experience such exploits to its systems in current months. Additionally, in March 2021, DODO DEX, the DeFi platform, got hit for $3.8 million in a similar attack. Moreover, various, DeFi platforms have been experiencing several types of exploits that affect the ecosystem badly.  

Balancer Labs is not the first one to reveal bounty programs. Various DeFi projects have applied such bounty programs to verify that their platforms are secure and regulated. Additionally, last year Google declared it had rolled out approximately $7 million to digital bounty hunters in 2020 alone through their vulnerability reward program. Moreover, several tech companies have embraced bug bounty programs currently.

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