Decentralized Cybersecurity Protocol Hats Raises $3.5 Million in Seed Funding to Make DeFi Safer
Decentralized cybersecurity protocol Hats successfully closed its seed round, raising $3.5 million dollars in funding from numerous key
Decentralized cybersecurity protocol Hats successfully closed its seed round, raising $3.5 million dollars in funding from numerous key players in the segment, with Greenfield One in the lead, along with Lemniscap, Spartan Capital, Accomplice, Collider Ventures, IOSG Ventures and more investors. Governed by its community stakeholders consisting of hackers, projects as well as token holders, it will soon offer a bug bounty vault to offer incentives to hackers willing to disclose any vulnerabilities they discover.
As soon as a hacker within the community discovers an exploit, he can notify the development to a specific vault committee along with an on-chain hash proof recording this event. Each vault has its own committee consisting of a trusted technical team in the project and will also include security researchers and white hat hackers going forward. Once the committee verifies the vulnerability as valid, it will release the funds to reward the hacker for its efforts on the basis of the token allocation within the specific vault. The Hats network will feature scalable security vaults containing each project’s own token – the value of which will rise based on the success of the project, taking up the bounty on offer as well.
DeFi Security an Emerging Concern After Recent Attacks
The recent news of the Poly Network hack, which was the largest crypto hack till date compromising around $610 million, went on to garner attention and raised alarms amid the crypto community. However, the quick reaction by Poly Network’s team and other stakeholders helped the company get back its funds from the hacker, even as it offered a bug bounty of $500,000 to entice the hacker to return the stolen funds. Coming against the backdrop of the Poly Network hack, an initiative like that of Hats is sure to gain significant traction and further raise investor confidence in the DeFi and crypto sectors going forward. It is a unique DeFi project that works within the system to improve its security, and is sure to attract considerable as hackers and attackers have set their sights on the lucrative world of DeFi, drawn to it by its ever-rising popularity and success.
Hats has already gone live with Liquity and Kleros bounty vaults, providing a platform for hackers to receive incentives for discovering any known vulnerabilities within these DeFi ecosystems. The first of its vaults will include 100,000 in USDC which will be offered to any hacker who can disclose any possible vulnerabilities or exploits on the Hats protocol. The network will also support NFTs, allowing interested artists who have already pledged their support to the initiative to create unique NFTs that can be minted for hackers and auditors who disclose vulnerabilities. In this manner, the team of developers behind Hats envisions the possibility of incentivizing black hat hackers to put their skills to good use and to improve the security of the crypto and DeFi ecosystems.
What’s Next?
With the latest seed round, the Hats network has successfully attracted contributions from veterans in the crypto industry spanning Ethereum coding pioneers, R&D experts and other experts from the world’s leading crypto projects. The funds raised in this round will help the company propel it towards faster growth, adding support for more bounty vaults and increasing the scope of its bug bounty vault, the Protocol Protection Mining (PPM).
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