{PROJECT_NAME} <> Hats.finance: Proactive security for smart contract

This is a proposal for {PROJECT_NAME} to collaborate with Hats.finance to create a hacker/auditors incentive pool to protect the {PROJECT_NAME} contracts.

The goal of the vault is to incentivize vulnerability disclosure for {PROJECT_NAME} smart contracts while farming rewards in the form of hats tokens.

Overview

Hats.finance is a proactive incentive protocol for white hat hackers and auditors, where projects, community members, and stakeholders incentivize protocol security and responsible disclosure.

Hats creates scalable security vaults using the project’s own token. The value of the bounty increases with the success of the token and project. In addition, NFT artists have pledged assistance and will create numerous unique NFTs that will be minted for Hackers or Auditors that l responsively disclose vulnerabilities.

Hats. Finance offers every participant in the Ethereum ecosystem the opportunity to have some skin in the game and create a more secure future for the users of #Ethereum.

Hats.finance mechanism:

• Smart contracts are continuously offering a bounty in the form of their value or the value that is locked by them. Extracting this value in a malicious manner causes more harm to the ecosystem than the size of the extracted value.
• Incentivize continuous audit for smart contracts
• Hacks and exploits have an effect on the adoption of all smart contracts and the ecosystem itself. Ecosystem adoption is boosted when we can reduce this risk.
• The future of the economy is being withheld by the forces who try to hack it. Hats.Finance incentivizes both parties to collaborate towards the success of the ecosystem.

Benefit:

Project coverage :

• 24\7 audits on your protocol with a proactive approach that incentivizes hackers to disclose vulnerabilities instead of hacking
• A disclosed vulnerability means no TVL\ TOKEN loss
• PR of vulnerability becomes a strength to the project.
• Attract more users to the “strong and secure protocol”

Token value:

• Token staked in vault → Token with higher security guarantees.