Decentralized Credit Protocol Cream Finance is backing another major effort to improve the security of decentralized finance.
On Tuesday, Cream Finance announced a new security campaign in partnership with several DeFi platforms such as Immunefi, Armor.fi and DeFiSafety to bring stronger security to its protocol and the wider DeFi ecosystem.
As part of the campaign, Cream Finance is launching a $ 1.5 million bug bounty program with blockchain bounty platform Immunefi to strengthen Cream’s protocol, API and website security.
The new bug bounty will focus on Cream Finance’s smart contracts and prevent potential exploits of user funds, assets and data breach vulnerabilities. The bounty rewards are distributed in accordance with a five-tier scale outlined in Immunefi’s vulnerability and severity rating system.
In addition to the bug bounty, Cream Finance will also partner with the DeFi smart cover aggregator, Armor.fi, to give users the option to insure their money against a hack.
“Security is key to the decentralized financial ecosystem maturing and making emerging financial technology available to more users around the world. We provide greater project transparency through DeFiSafety, prevent hacks with Immunefi, and provide users with a clear path to purchase insurance coverage from Armor.fi, ”said Leo Cheng, co-founder and project leader of Cream Finance.
Cheng said it’s impossible to avoid vulnerabilities in new technologies like DeFi, but it’s important to minimize the risks:
“There are risks, eggs are and are broken. More than ever, we are committed to seeking innovations in capital efficiency and security measures. As with all new technologies, there will be more vulnerabilities over time. The key is to minimize the impact of these bumps on the road while maximizing the benefits. “
The DeFi sector was a major target for cryptocurrency hacks last year, accounting for 50% of the total losses from thefts and hacks in the crypto industry in the second half of 2020. Due to its decentralized nature and unregulated status, it is DeFi ecosystem more attractive to hackers than centralized crypto exchanges, with non-DeFi crypto crimes down nearly 60% by 2020.