Compound Finance, a leading cryptocurrency lending protocol, has launched a $1 million bug bounty program in collaboration with Immunefi, a blockchain security firm. The initiative aims to bolster the security of Compound’s decentralized finance (DeFi) ecosystem by incentivizing security researchers to identify and report vulnerabilities within the protocol.
The program, announced on Dec. 12 via Compound’s Medium blog, offers rewards for discovered bugs based on their severity. Critical vulnerabilities could earn researchers up to $1 million, while lower-severity bugs are rewarded starting at $1,000. Rewards will be paid in COMP tokens, underlining Compound’s dedication to creating a secure and transparent DeFi ecosystem.
Quote from Immunefi:
“All rewards are denominated in USD but paid in COMP tokens, reinforcing Compound’s commitment to a secure and transparent DeFi ecosystem.”
About Compound Finance
Founded in 2017 by Robert Leshner and Geoffrey Hayes, Compound Finance allows users to borrow and lend cryptocurrencies. The protocol operates on major blockchains, including Ethereum, Polygon, and Arbitrum, and has received backing from prominent investors such as Andreessen Horowitz (a16z), Bain Capital Ventures, and Polychain Capital.
The bug bounty launch comes after a notable event in October 2023, when a fork of Compound, Onyx Protocol, was exploited due to a rounding error in its inherited code, leading to a $2.1 million loss. While Compound Finance itself has not faced such an exploit, this bug bounty underscores its proactive approach to securing its platform.
This program reflects the broader trend in the blockchain industry, where transparency and collaboration with the security community are essential for maintaining trust and innovation.
