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Cream Finance is attempting to reduce bugs with a modern security campaign.
Cream Finance, a decentralised lending protocol, is supporting yet another big initiative to strengthen the stability of decentralised finance.
Cream Finance launched a new security initiative on Tuesday in conjunction with several DeFi networks, including Immunefi, Armor, and DeFiSafety, to strengthen the security of its protocol and the broader DeFi ecosystem.
Cream Finance is offering a $1.5 million bug bounty scheme with blockchain bounty network Immunefi as part of the effort to improve Cream’s protocol, API, and website stability.
The new bug bounty will focus on Cream Finance’s smart contracts and the prevention of potential exploits against user funds, assets and data breach vulnerabilities. The bounty rewards will be distributed in accordance with a five-level scale described in Immunefi’s vulnerability severity classification system.
Cream Finance will now collaborate with DeFi smart cover aggregator Armor to provide consumers with the opportunity to insure their funds from a hack, in addition to the bug bounty.
“Security is critical to maturing the decentralised finance ecosystem and bringing emerging financial technology to more users worldwide.” “Through DeFiSafety, we are increasing project transparency, preventing hacks with Immunefi, and providing a clear path for users to buy insurance coverage with Armor.fi,” Cream Finance co-founder and project lead Leo Cheng said.
Cheng said that while it is difficult to prevent flaws in emerging technology such as DeFi, it is critical to minimise the risks:
“There are risks, eggs will be and have been broken. We’re determined more than ever to seek out innovations on both capital efficiency and safety measures. As with all new technologies, there will be more vulnerabilities along the way. The key is to minimize the impacts that these bumps on the road will bring while maximizing the benefits.”
Last year, the DeFi market was a big focus for cryptocurrency hackers, responsible for half of all losses in the crypto industry from robberies and hacks in the second half of 2020. The DeFi environment is more appealing to hackers than centralised crypto exchanges due to its decentralised existence and uncontrolled status, with non-DeFi crypto crimes falling nearly 60% by 2020.