A look at DeFi audits and bug bounty programs

There is a recent trend in decentralized finance (DeFI), popularized with the launch of YFI, of releasing unaudited projects to user access. But as we’ve seen with the collapse of Yam Finance, bugs found in the smart contracts of projects can be financially detrimental to users and investors of unaudited projects. 

While an audit by no means signifies the complete safety of a project, as Hegic’s bug has shown, smart contract auditors continue to play an important role in the ecosystem. By having a third-party auditor scrutinize code and act on fixing vulnerabilities, projects signal to their users that they take the security of funds seriously.