Binance Smart Chain (BSC)-based automated market maker (AMM) protocol, Belt Finance, reportedly paid a white hat hacker with the largest bounty in the entire history of decentralized finance (DeFi) for deterring a probable bug incident that may have cost the project over $10 million.
The white hat hacker, named Alexander Schlindwein, purportedly managed to unravel Belt Finance’s vulnerability last week and promptly reported the findings to its team. For Schlindwein’s discovery and subsequent reporting, the protocol rewarded him $1.05 million, the largest reward sum in the sector’s history.
Breaking down the figures furthter, $1 million was granted by the software security market leader Immunefi, while the remaining $50,000 was rewarded via BSC’s Priority One program.
Schlindwein reportedly went through the comprehensive list of bug bounties present on Immunefi and chose Belt Finance as the following protocol to investigate. Through his deep dive within the protocol, he eventually noticed a bug in its internal bookkeeping, which was responsible for keeping track of user’s deposited funds. He then commended the team behind Belt Finance for their quick response as well as the whole concept of bug bounties and bounty funds.
According to him, these programs help protocols discover vulnerabilities through external means, thus, adding another layer of defense that protects them from potentially massive losses.