LayerZero Labs, the crew behind the multi-chain messaging protocol LayerZero, has partnered with error compensation and safety providers platform Immunefi to spend $15 million on its protocol.
The Bug Bounty Alliance will supply a most reward of $15 million for each new vulnerability found by white hat hackers. The platform has reported bugs previously, however none this massive, Pellegrino stated.
With a most reward of $15 million, this system can be the biggest bug program within the cryptocurrency ecosystem, surpassing MakerDAO’s $10 million program.
“We find the money for to pay a number of bonuses. The safety of the protocol is extra necessary than anything,β Pellegrino stated. Pellegrino added that the reward cash will come from the proprietary entity of LayerZero Labs.
Immunefi claims to supply greater than $60 billion in safety providers. Up to now, it has paid out greater than $75 million in bug fixes.
Final month, LayerZero raised $120 million. USD Sequence B spherical, valuing it at 3 billion. USD. In contrast to Net 2.0 messaging platforms akin to WhatsApp and Telegram, its messaging protocol permits customers to ship various kinds of messages between blockchains, akin to cross-chain interactions, with out the necessity for intermediaries. LayerZero connects over 30 mainnet blockchains, together with two non-Ethereum Digital Machines (EVMs) and Aptos.
Final yr, the cryptocurrency ecosystem misplaced about $9.33 trillion to exploits, hacks and fraud, with just below $1 trillion recovered, in response to the De.Fi REKT database.
In response to Immunefi’s Crypto Losses 2022 report, greater than 3.9 billion was “misplaced” final yr. Whereas this will seem to be an enormous quantity of capital to lose, it’s 51.2% lower than in 2021, when greater than $8 billion was stolen. USD, in response to the report.
in 2022 a lot of the losses, or 3.77 billion USD, was incurred resulting from hacks in 134 particular incidents. About $175 million was misplaced to fraud in 34 incidents throughout the identical interval.
in 2022 March. The variety of transactions initiated by LayerZero within the 14 months up to now has exceeded 15 billion. USD, Pellegrino stated. He added that since its inception, the messaging protocol “has by no means had a safety exploit or hack.”
LayerZero spent about $5 million final yr. USD for an audit to make sure its safety and goals to observe a course of to make sure the code is safe earlier than it’s launched, Pellegrino stated.
Though the market is experiencing much less losses, the numbers misplaced are nonetheless big. In March, hackers stole round $200 million from crypto-lending platform Euler Finance. Whereas that appears like some huge cash – and it’s – it’s solely twenty sixth largest cryptocurrency theft, in response to De.Fi information.
“For anybody constructing on this area, security needs to be a high precedence,” Pellegrino stated. “If you do not have good safety, finally you’ll get hacked.”
