The decentralized finance space witnessed the flourishing of new incentive mechanisms like liquidity mining and airdrops in the early 2020s. However, this growth also brought an increase in hacks and exploits, posing significant challenges for projects to secure affordable and effective audits.— a community-focused onchain audit platform — saw an opportunity to leverage these incentive mechanisms to create a decentralized and cost-efficient solution for Web3 security.
CT: Security is considered one of the core pillars of Web3 that is not yet fully onchain. How does Hats Finance plan to integrate more security aspects into blockchain?Today, all our bug bounties and audit competitions, including the results, are onchain. With Hats, users can check the onchain data to see if a certain smart contract is audited or secured by a bug bounty. We are also part of an initiative to standardize this process with EIP-7512.
Auditors don’t really want to focus on these administrative tasks; we believe in a future where audit companies are replaced by onchain audit DAOs.At Hats, we only charge a fee on rewards for successful submissions. Therefore, if no vulnerabilities have been identified, the competition is free for the customer. This is a huge improvement for the customer since it happens often that the customer pays a lot of money for an audit just to find out that the auditor wasn’t able to provide any value.