The development of a bug bounty program has recently been proposed by the team members of Raydium – a Solana-based decentralized exchange. The aforementioned initiative, which would cost 10 million RAY tokens, or around $2.3 million, would be used to fix issues that affected the protocol’s central smart contracts.
Table of Contents
The Proposed Program
According to an alleged post on the project’s Discord channel by InfraRay, the protocol’s fictitious head of partnerships, the new program is intended to target Raydium’s Concentrated Liquidity Market Maker smart contracts. Raydium’s management of cryptocurrency trading on the Solana blockchain is controlled by those lines of code.
Data from the DefiLlama at the time of writing showed that Raydium’s liquidity pools had over $37 million in total value locked as of that moment. It amounts to almost three-quarters of the TVL that Orca, the leading decentralized exchange in Solana, holds. On the other side, CoinGecko revealed that RAY, the exchange’s token, was valued at approximately $0.23 on Thursday and had decreased by 2% over the previous 24 hours.
The proposal’s Possible Effects
According to the severity of the problem that they have discovered, the claimed proposal, which was presented by InfraRAY via a Discord thread, promises to reward white hat hackers with up to $505,000 or as little as $5,000 in RAY tokens. The management of this will thereafter be handled by the bug bounty platform Immunefi.
It’s also important to note that InfraRAY determined that the aforementioned proposal belonged in a specific “forum” on Raydium’s Discord server, which is known to be a component of a larger initiative to increase community involvement in protocol governance.
Raydium’s Dark Holiday
According to reports, this program is related to the hacking issue that occurred at Raydium over the holiday season last year. As soon as Solana began to suffer after FTX’s collapse, its DeFi protocol reported that it had been compromised. In addition to using that access to start emptying Raydium’s liquidity pools, the claimed hacker used that access to assume control of the company’s “owner authority”
Only a few hours after the announcement, hackers had already stolen SOL worth $1.6 million and other digital assets totaling over $2.2 million from a pool on Raydium. It seems that the aforementioned hacker used one of the protocol owner’s private keys to carry out the attack.